Different builders apply it differently, but it basically does two things. It hardens the epoxy, and seems to make it slicker too. I mix it at 20% of powdered graphite by volume. Three coats provides a full coverage.
On my boats, where they encountered sharp rocks (broken granite, quarts, gneiss, etc.) scratches that traveled from the graphite surface up onto plain epoxy, became deeper digs in the plain epoxy. And, when paddling through lilly pads, weeds, and such, the boat definitely has less resistance. I have not tested with a fixed load and a spring scale, but have paddled the same boat with and without graphite, and can tell a difference.