Maverick ProtocolMAV to AUD

Maverick Protocol is a DeFi infrastructure provider focused on increasing industry efficiency, powered by Maverick AMM. Maverick is backed by Founders Fund, Pantera Capital, Coinbase Ventures, Binance Labs, Circle Ventures, Gemini, etc.

Maverick’s eliminating inefficiency from DeFi by helping users put their liquidity where it can do the most work. It’s built in 3 phases:

• Capital Efficiency launched the first Dynamic Distribution AMM
• Liquidity Incentivization Efficiency floated liquidity shaping tool - Boosted Position
• Voting Escrow ve-Model and metaprotocol design

What is the Maverick Protocol? 

Maverick Protocol is a new infrastructure for decentralized finance, built to facilitate the most liquid markets for traders, liquidity providers, DAO treasuries, and developers, powered by a revolutionary Automated Market Maker (AMM).

How Do I Use the Maverick Protocol?

Maverick Protocol has launched its dApp to Ethereum mainnet, where users can try out all the features of Maverick AMM. You can head to app.mav.xyz to make swaps, create liquidity pools, and explore the novel liquidity modes available on Maverick.

You will need a self-custodial wallet and some tokens to use the dApp.

How Does the Maverick Protocol Work? 

Maverick Protocol is powered by Maverick AMM, Defi's first Dynamic Distribution AMM. 

Maverick AMM helps its users maximize capital efficiency by automating the concentration of liquidity as price moves. Higher capital efficiency leads to more liquid markets, which means better prices for traders and more fees for liquidity providers. This built-in feature also helps LPs to eliminate the high gas fees that come from adjusting positions around the price themselves.

Liquidity providers can also now choose to follow the price of an asset in a single direction, effectively making a bet on the price trajectory of a specific token. These directional bets are similar to single-sided liquidity strategies, in that the liquidity provider will be mostly or entirely exposed to a single asset in a given pool.

When Does Liquidity Move in Maverick AMM?

All liquidity movement is governed by the Time Weighted Average Price (TWAP) of a given pool. After the first swap in a block, the contract updates the TWAP and checks if any liquidity needs to be moved, based on the rules of each movement mode. If it finds a bin that needs to be moved, it moves it. This operation only happens once in a single block. For more information, please refer to their White Paper.

Do Liquidity Providers Have to Pay Gas When Their Liquidity is Moved?

No. Since liquidity movement is natively automated by the AMM smart contract, LPs do not pay gas when their liquidity is moved for them. The only time an LP will pay gas is when they add or remove liquidity.

What is a Maverick Position NFT? 

When you add liquidity for the first time, you mint a Maverick Position NFT. This single NFT is used to store all of your LP balances on Maverick. If you open more liquidity positions, they will be stored on the same NFT. More information can be found in the Whitepaper.

If you choose to remove liquidity from a position, you will first have to approve the contract's access to your Maverick Position NFT. Then you can proceed with the removal of liquidity flow.

The wallet that holds a Maverick Position NFT controls the liquidity associated with that NFT. Do not transfer or sell your Maverick Position NFT unless you want to give control of the liquidity to another wallet.

How Do Transaction Fees Work on Maverick?

When users add liquidity on the Pool page, they can choose from a range of fee tiers from 0.01% to 3%.

On the LP side, each pool on the testnet technically consists of several sub-pools, organized by these fee tiers. LPs have the freedom to choose which sub-pool they deposit in, and can even deposit in more than one sub-pool if they want.

On the Swap side, traders only ever see one pool for each asset pair. This is because the AMM intelligently routes their swap requests to whichever available sub-pool can offer them the best price at that moment. If the best price is in the 0.01% sub-pool, the trader will swap with that pool; if it's in the 2% sub-pool, they will swap with that pool instead.

How is Maverick Protocol Secured?

Maverick Protocol uses a variety of techniques to guarantee the integrity and security of its DeFi infrastructure. By implementing a number of crucial safeguards, the protocol's security structure is intended to preserve user assets and the stability of its systems. Although Maverick Protocol takes great care to maintain security, users must continue to exercise caution and remain informed due to the dynamic and ever-changing nature of the blockchain industry.

Conclusion

Maverick is a flexible DeFi infrastructure that enables LPs and builders to carry out their chosen LP strategies and maximize capital efficiency. The native token MAV, which powers the ecosystem, is at the heart of Maverick.

The main goal is to eliminate inefficiencies within DeFi by giving individuals the ability to strategically distribute their liquidity for the greatest possible effect. AMM is essential to this effort since it provides a large variety of LP methods and outperforms constant product and range AMMs in terms of capital efficiency. 

The team is putting a lot of effort into their concept, and given the current accomplishments, we can say that this is an ambitious project that merits attention. Investing in Maverick Protocol or any other cryptocurrencies carries risks. Perform exhaustive research and seek financial advice from a crypto expert. This blog is informative and is not liable for any losses or decisions made by investors.