Maverick Phase II enables protocols to “surgically” create liquidity positions through its Automated Market Maker (AMM).
NEW YORK, May 2, 2023–(BUSINESS WIRE)–Maverick Protocol, a decentralized exchange (“DEX”) that enables greater capital efficiency than current market leaders, has introduced a “surgical incentivization” feature enabling protocols , incentivizing liquidity targeted for a specific distribution on its Dynamic Distribution Automated Market Maker (AMM). This feature – called “Boosted Positions” – is intended to enable a new level of precision and efficiency in liquidity incentivization, allowing users to incentivize each 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 using any Maverick mode and distributions and then target incentives directly to 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 precision of these incentives provides a more efficient way to lock in, an effective way to build a price wall for long-tail tokens, and generally more opportunities to experiment with liquidity incentives.
“Protocols have become smarter about liquidity and have realized that they need to direct liquidity to where it is needed most,” said Bob Baxley, CTO of Maverick. “This is particularly important for liquidity staking protocols that are competing for millions of unstaked ETH following the Shanghai upgrade in April. We expect this period to become known as the “Liquid Staking Wars.” With this upgrade, we expect Maverick to become the automated market maker of choice for protocols and liquidity providers to Shanghai.”
Users like external protocols can add token incentives to an elevated position using any token. Incentives added to an elevated position will be distributed to LPs in that elevated position over a period of between three and thirty days at the discretion of the incentive provider. LPs also benefit from Maverick's Dynamic Distribution AMM – an innovative smart contract that moves liquidity on behalf of LPs as the price in the AMM changes, resulting in greater capital efficiency.
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Since Maverick launched on March 8, the protocol has been ranked as one of the top 5 DEXs on Ethereum on DeFiLlama. Maverick secured a total value locked (“TVL”) of more than $20 million and achieved an active capital or “capital efficiency” ratio of up to 374%. Industry-leading liquid stake token protocols Lido, Frax and Coinbase are already integrated into the platform, with liquidity pools such as wstETH-ETH, cbETH-ETH, sfrxETH-ETH and swETH collectively achieving a TVL of over $13 million.
The liquidity pool incentive tool is part of a Phase II upgrade to the protocol. To get started with Maverick or learn more, visit mav.xyz.
About the Maverick Protocol
The Maverick Protocol is a new decentralized finance infrastructure designed to provide traders, liquidity providers, DAO Treasuries and developers with greater capital efficiency and better capital control, based on a revolutionary Automated Market Maker (AMM). Learn more at www.mav.xyz or follow us on Twitter @MavProtocol to stay up to date with the latest news.
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