Maverick Phase II allows protocols to “surgically” shape liquidity positions through its Automated Market Maker (AMM).
NEW YORK, May 02, 2023–(BUSINESS WIRE)–Maverick Protocol, a decentralized exchange (“DEX”) that enables greater capital efficiency than current market leaders, has introduced a “surgical incentive feature” that allows protocols to incentivize to create liquidity targeted to a specific distribution on its Dynamic Distribution Automated Market Maker (AMM). This feature – dubbed “Boosted Positions” – is expected to unlock a new level of precision and efficiency in liquidity incentivization, as users can incentivize any liquidity position rather than the entire liquidity pool. Maverick Protocol is the only DEX that offers industry-leading capital efficiency and the ability to increase targeted liquidity positions in liquidity pools.
Users can now create a position with any of the Maverick modes and any distributions, and then target incentives directly at that position within a larger pool. Liquidity Providers (“LPs”) can now earn both fees and incentives. For liquid staking protocols and other projects, the surgical rigor of these incentives provides a more efficient way to stay on the shelf, an effective way to build a price wall for long-tail tokens, and more opportunities in general to experiment with incentivizing liquidity.
“Protocols have gotten smarter about liquidity and recognize they need to direct liquidity to where it’s needed most,” said Bob Baxley, Maverick’s CTO. “This is especially important for liquidity staking protocols competing for millions of unstaked ETH following April’s Shanghai upgrade, a period that we believe will become known as the Liquid Staking Wars. With this upgrade, we expect Maverick to be the automated market maker of choice for protocols and liquidity provider to Shanghai.”
Users like external protocols can add token incentives to an elevated position using any token. Incentives added to an upgraded position will be distributed to LPs in that upgraded position over a period of between three and thirty days, at the discretion of the initiator. LPs also benefit from Maverick’s Dynamic Distribution AMM – an innovative smart contract that shifts liquidity in favor of LPs when the price in the AMM changes, resulting in increased capital efficiency.
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Since Maverick’s launch on March 8th, the protocol has been ranked as one of the top 5 DEX on Ethereum on DeFiLlama. Maverick secured more than $20 million in total committed value (“TVL”) and achieved an active capital or “capital efficiency” rate of up to 374%. Industry-leading liquid staking token protocols Lido, Frax, and Coinbase have already integrated into the platform, with liquidity pools such as wstETH-ETH, cbETH-ETH, sfrxETH-ETH, and swETH collectively hitting over $13 million in TVL.
The Liquidity Pool Incentive Tool is part of a Phase II update to the protocol. To get started with Maverick or to learn more, visit mav.xyz.
About the Maverick Protocol
Maverick Protocol is a new decentralized finance infrastructure designed to offer greater capital efficiency and greater capital control to traders, liquidity providers, DAO treasuries and developers, powered by a revolutionary Automated Market Maker (AMM). Learn more at www.mav.xyz or follow us on Twitter @MavProtocol to keep up with the latest news.
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