Uniswap V3 brings high efficiency when concentrating large liquidity in a fixed price range. This helps people enjoy the lowest price slippage when trading in that price range. But if the price fluctuates strongly and moves away from that large liquidity zone, the price slippage is very large because of poor liquidity.
A project called Maverick Protocol is invested by many famous funds such as Pantera Capital, Jump Capital, Circle, Spartan Group. With the latest AMM technology, Maverick promises to partly solve the limitations of current AMMs.
What is Maverick Protocol? Maverick Protocol is an AMM Dex that uses Directional LPing, a new directional mechanism in AMM. Along with that, the protocol further combines the Uniswap V2 and V3 models to create a new comprehensive Dex.
So what is Maverick Protocol? How does it work? Let’s find out in this article!
To know more about the project, you can read the following articles:
- Series 3: Real Builder in Winter | Uniswap – The True Unicorn Cryptocurrency Ever Produced
- Operating mechanism: Uniswap – From challenger to unique position
- What is Trader Joe’s (JOE)? Trader Joe’s Cryptocurrency Overview
- Series 4: Real Builder in Winter | Trader Joe – From a Follower to a Leader
- What is Orca (ORCA)? Orca Cryptocurrency Overview
- Series 1: Real Builder in Winter | Orca – The Most Different AMM On Solana
- What is Centralized Liquidity (CLMM)? Outstanding Projects In The CLMM Array
What is Maverick Protocol?
The problem is posed
The problem with centralized liquidity AMMs like Uniswap V3 is that when the price goes out of the range with high centralized liquidity, the price will slide quickly and liquidity will be poor. The person adding liquidity must again set up to add liquidity at a new price range. As such, they will have to closely monitor their additional liquidity position on the Dex and have to spend money to install new liquidity zones.
Maverick allows user liquidity to move in one direction of price automatically by the protocol. Helps users not have to monitor liquidity positions and does not incur many fees. And when prices go up or down, there is liquidity to trade.
Maverick Protocol solves the lack of liquidity outside the centralized area when prices fluctuate strongly and Impermanent Loss, the spread liquidity of Uniswap V2’s AMM model.
Overview of Maverick Protocol
Maverick Protocol is an AMM Dex that uses Directional LPing, a new directional mechanism in AMM. Along with that, the protocol further combines the Uniswap V2 and V3 models to create a new comprehensive Dex. Provides the best rates and helps traders earn high fees and easily manage their liquidity positions.
Maverick is an EVM smart contract, initially launched on Ethereum, then expanded to other EVM compatible L1, L2.
Maverick provides 4 AMM mechanisms with Mode Right, Mode Left, Mode Both, Mode Static models. With a variety of liquidity modes, users can choose their risk with arbitrary fees.
In the protocol, a term called Bin appears. A bin is the smallest unit of a price range. When adding liquidity the user can select one or more buckets. Usually for volatile assets, it is recommended to set a Bin of 2%, and for Stablecoin assets, it is recommended to set a Bin of 0.02%-0.05%.
Mechanism of action
Products
- Swap: Like other Dex exchanges users can trade assets with each other and Maverick offers the best prices.
- Pools: People adding liquidity can deposit assets with different modes, fees, and Bin widths to earn transaction fees.
- Portfolio: Interface for managing liquidity positions and assets.
AMM models
Maverick has 4 liquidity modes as follows:
- Mode Right: Bin moves right when price increases and does not move when price decreases. That is, when the price increases beyond the liquidity zone, Bin will move to the right. But when the price drops outside the active liquidity zone, Bin will not move.
- Mode Left: In contrast to Mode Right, Bin moves left when price decreases and does not move when price increases. That is, when the price drops beyond the liquidity zone, Bin will move to the left. But when the price increases outside the active liquidity zone, Bin will not move.
- Mode Both: With this mode, Bin will move both up and down in price out of the liquidity zone. But the risk of permanent loss is very high.
- Mode Static: Bin will be fixed and will not move when the price goes beyond the liquidity zone.
As for Mode Static mode, there are 3 different settings as follows:
- Exponential: Liquidity is concentrated at the current price and the liquidity allocation decreases exponentially across the left and right Bins.
- Flat: Evenly distribute liquidity across Bins.
- Single Bin: Liquidity is distributed to a single Bin.
Development Roadmap
Updating…
Core Team
Bob Baxley: Contributor
- Bob completed his Bachelor’s, Master’s, and Doctoral degrees in Electrical Engineering at Georgia Institute of Technology.
- Bob is a founder and Board Member at Anidata. Anidata’s mission is to mentor data science professionals through projects that benefit the surrounding community.
- Currently, Bob is Co-Founder of Bastille, a company founded 9 years ago. In addition, Bob is Principal at Zylinium, Contributor at Maverick Protocol, Chief Technology Officer at Nexus Labs Inc.
Alvin Xu: Contributor
- Alvin’s highest level of education is a Master’s degree in Business Administration, graduated from the University of Illinois Urbana-Champaign.
- In 2018, Alvin participated in building the ecosystem of TRON Foundation. At the same time, Alvin worked as Product Manager at BitTorrent.
- In 2020, Alvin became Product Lead at ABRA, a cryptocurrency lending application, using BTC as collateral. At the same time, Alvin worked as Product at MetaMask.
- Since 2021 until now, Alvin is Contributor of Maverick Protocol and Chief Executive Officer at Ubiquity Labs.
Investors
June 1, 2021: The Seed round that successfully raised $1M was led by Jump Crypto and included funds such as Shima Capital, Apollo Capital Management, Advanced Blockchain, Taureon.
February 15, 2022: The Seed round successfully raised $8M led by Pantera Capital, with the participation of funds such as: Circle, Spartan Group, CMT Digital, Shima Capital, GoldenTree Asset Management, Jump Crypto, TRON Foundation, LedgerPrime, Advanced Blockchain, Altonomy, Taureon Capital, Valhalla Capital, Gemini, Apollo Capital, Coral DeFi.
June 12, 2023: The successful $9M Venture round was led by Founders Fund and included participation from other funds such as Pantera Capital, Binance Labs, Coinbase Ventures, and Apollo Crypto.
Tokenomics
Overview information about Token Maverick Protocol
- Token Name: Maverick Protocol
- Ticker: MAV
- Blockchain: Ethereum
- Standard: ERC-20
- Contract: 0x7448c7456a97769F6cD04F1E83A4a23cCdC46aBD
- Maximum Supply: 2,000,000,000
Token Allocation
- Liquidity Mining and Airdrops: 30.85%
- Team: 19%
- Public Goods Fund: 16.5%
- Binance Launchpool: 1.5%
- Investors: 18%
- Foundation/ Treasury: 10%
- Advisors: 4.15%
Token Release
Token Use Case
MAV Token holders can stake to receive veMAV Tokens, which can receive revenue sharing, protocol governance, and participate in the bribery market.
Exchanges
Updating…
Maverick Protocol’s Information Channel
- Website: https://www.mav.xyz/
- Twitter: https://twitter.com/mavprotocol
- Discord: https://t.co/klOIQBsQgR
- Medium:
Summary
Maverick Prortocol brings new models in AMM, providing the best prices and helping liquidity adders earn high fees with different risk levels. It’s only been out for about a month, but the protocol already has a total trading volume of over $300M.
With the products and results that the protocol has achieved in recent times, Maverick has become a challenger to Uniswap. But Maverick is targeting a very potential segment, which is the LSD Token asset. And Maverick also deployed the veToken model for participating LSD protocols to hold MAV Tokens and offered many incentives to MAV Holders.
So I have clarified what Maverick Protocol is? Overview of Maverick Protocol cryptocurrency. Hope this article brings you a lot of useful knowledge!