What is Maverick Protocol?
Maverick Protocol introduces the novel AMM concept of Directional LPing, which offers the best rates for liquidity providers. This makes it easier for liquidity providers to control their capital and also makes more profit from the platform’s trading fees.
In addition, Maverick AMM helps its users maximize capital efficiency by automating the reconcentration of liquidity as price moves. LPs can select from a variety of liquidity shifting modes that do the work of monitoring price and reconcentrating liquidity for them.
Higher capital efficiency leads to more liquid markets, which means better prices for traders as well as more fees for liquidity providers. This built-in feature also helps LPs to eliminate the high gas fees that come from adjusting positions around price themselves.
Maverick Protocol’s Products
Before learning about Maverick Protocol’s products, there is a term called Bin – the smallest available price range. Users can select one or more bins when providing liquidity. The bin spacing is a configurable parameter that is set when a pool is initialized. For assets with, the platform recommends users to set bin spacing at 2% and for stablecoins, bin spacing is from 0.02% to 0.05%.
This feature allows users to swap between many different tokens with low slippage. Maverick Protocol is supporting token swap on 2 blockchains Ethereum and zkSync Era.
Pools allow users to provide liquidity with different modes, fees, and Bin width to profit from trading fees. Pools offers 4 different liquidity modes for users including:
It works by shifting the price range of the liquidity provided towards the right as the value of the base asset rises against the other, keeping the high end of the range at the current price. As price increases are rarely linear, retracements in price generate fees for the liquidity provider as it retraces within the range. The bullish bias also ensures that the liquidity provider minimizes their impermanent loss and reaps the gains of the upward price movement while earning on trading fees. If the bullish prediction is wrong and the price falls instead, this strategy does not chase after the price, and instead keeps the range as it is.
A movement to the left would correspond to an decrease in the price of one of the two assets in the pool (in this case, the “base” asset) as their ratio is changed by trading activity. One would expect this to happen if there was an decreased demand for that asset, leading to more people coming to the pool to swap it out for the other asset.
It follows the price in a pool wherever it moves–right or left. In other words, it follows the pool price up and down. This is in contrast to Mode Right and Mode Left, which only move an LP’s liquidity when the price moves in a single direction.
It keeps your liquidity in the range specified, much like a standard concentrated liquidity protocol. The catch here is that Maverick enables custom distribution of liquidity within the supplied price range. This means that users can select from a variety of distributions: exponential, flat or single bin, depending on their strategy.
- Exponential: Starts with a concentration of liquidity around the current pool price and spreads the rest of your liquidity in exponentially decreasing amounts across the bins to the left and right.
- Flat: Distributes liquidity evenly across a range of bins, centered around the current pool price.
- Single Bin: Distributes your liquidity only in the active bin.
This is a new feature in Maverick Protocol that helps liquidity pools to launch incentive campaigns to attract users. Each Boosted Position will be set up in 3 liquidity modes: Left, Both or Static.
Some advantages of Boosted Positions:
- Boosted Positions allow projects and other users to incentivize specific price ranges (or “positions”) to encourage specific behavior from liquidity providers.
- Attract liquidity to new liquidity pools, which can help improve the liquidity and trading volume of those pools.
Highlights of Maverick Protocol
Maverick Protocol is built to support LSTs (Liquid Staking Tokens) and is the ideal solution for maintaining liquidity within the yield range of LSTs. This helps to ensure that liquidity stays close to price throughout the LST yield cycle.
A lot of LST protocols are competing for market share and Maverick is the most effective platform when it comes to competition. Liquidity Providers can effectively provide liquidity and protocols can incentivize the liquidity distribution they desire.
Token Name: Maverick Protocol
Token Standard: ERC-20
Token usage: Utility và Governance
Total supply: 2,000,000,000 MAV
What is MAV used for?
MAV is a utility token that plays an important role in the Maverick Protocol ecosystem. Users can staking MAV to receive veMAV – the project’s governance token for voting rights. The longer a user stakes MAV, the more veMAV they will receive and the more governance rights they will have.
Where can investors trade MAV tokens?
MAV is not listed on any CEX or DEX exchange. The project has just been launched by Binance as the 34th Launchpool and users can lock BNB and TUSD to receive MAV within 25 days from June 14th at 0:00 UTC. The total supply of $MAV is 2 billion, 30 million of which is distributed to Binance Launchpool rewards.
MAV is expected to be listed on Binance on June 28, 2023 with MAV/BTC, MAV/USDT and MAV/TUSD trading pairs.
- Deploy on BNB Chain
- Launch Voting Escrow and Governance contracts
Q4 2023 (subject to DAO votes)
- Launch Boosted Pool Voting
- Launch AMM on more chains
Q1 2024 (subject to DAO votes):
- Launch AMM on more chains
- MAV LayerZero support on more chains
Maverick Protocol has successfully raised a total of $17 million in 2 funding rounds with the participation of investment funds such as Founders Fund, Jump Crypto, Binance Labs, Coinbase Ventures, etc.
Maverick Protocol is an AMM DEX that uses Directional LPing to provide the best rates for liquidity providers. With support for LST assets from many other protocols and being the 34th project on Binance Launchpool, Maverick Protocol has a great potential to thrive in the future.