Maverick protocol represents a composable decentralized finance infrastructure. No, it has nothing to do with Top Gun. Instead, it empowers builders and liquidity providers to attain elevated capital efficiency while implementing their desired Liquidity Providing (LP) strategy.
Essential information for their token is available on the MEXC Digital asset introduction page. Furthermore, we are listing (MAV/USDT – Trade it here) on the Innovation Zone! Check it out now!
The Current Problem With Concentrated Liquidity
Concentrating liquidity has transformed capital efficiency. Yet, its application in today’s Automated Market Makers (AMMs) places the burden on users to manage their own liquidity. When prices move outside of concentrated locations, this frequently leads to misallocation and poor efficiency. The issue develops when the pool price exceeds the range established by liquidity providers (LPs).
At this point, the LPs’ capital efficiency is negative because none of their capital is actively used in the AMM. To ensure capital efficiency, LPs must assume responsibility for transferring their liquidity to a new range, incurring both time and gas fees. In actuality, many LPs struggle to keep up with price changes, resulting in considerable liquidity stagnation in Range AMMs.
How Does Maverick Protocol Help?
Maverick AMM is specifically designed to assist users in maximizing capital efficiency through the automated process of reconcentrating liquidity as prices fluctuate. Liquidity providers (LPs) have the flexibility to choose from a range of liquidity-shifting modes. It takes charge of monitoring prices and realigning liquidity on their behalf.
Enhancing capital efficiency will not only result in more liquid markets. It also translates into improved prices for traders and higher fees for liquidity providers. This intrinsic feature of Maverick AMM also eliminates the need for LPs to individually adjust their positions around the price. Thereby, eliminating the associated high gas fees.
Additional Features of the Maverick Protocol
Directional LPing
Liquidity providers now have the option to align themselves with the price movement of a particular asset. It is essentially placing a bet on the trajectory of that token’s price. These directional bets resemble single-sided liquidity strategies, as the liquidity provider will primarily or entirely expose their capital to a single asset within a given pool. As the price moves in the chosen direction, the AMM automatically adjusts the liquidity concentration to track the price movement, enabling the LP to capture more fees. When an LP accurately predicts the price direction, they can leverage this mode to benefit from reconcentrated liquidity aligned with the price movement, all without experiencing any impermanent loss (IL).
Customizable Liquidity Distributions
Maverick offers liquidity providers the flexibility to configure their preferred liquidity distribution across the price range of a pool. The platform provides various pre-designed distributions for LPs to choose from. It also allows them to fine-tune their own custom liquidity strategy on a bin-by-bin basis. In other concentrated liquidity AMMs, achieving a complex liquidity distribution would typically involve opening multiple positions and minting several NFTs to support each one. However, with Maverick, LPs can design their desired custom distribution within a single position, using only one NFT. This streamlined approach simplifies the process and offers LPs greater control over their liquidity strategies.
Benefits of Using the Maverick Protocol
- Active Liquidity Strategies: Maverick incorporates native automation for reconcentrating liquidity. This allows users to configure an active liquidity strategy that doesn’t require manual management, saving time and reducing gas fees.
- More Fees for LPs: With the automated reconcentration, third-party DApps (such as Charm, and Gamma) no longer have opportunities to profit from liquidity provision on Maverick. This ensures that more fees remain available for the liquidity providers themselves.
- Better Prices: Maverick’s automated liquidity shifting ensures there is always a robust liquidity base supporting the market price. As a result, traders can enjoy improved pricing and lower slippage when executing trades.
- Low-Maintenance Market Making: Maverick’s intelligent liquidity-shifting mechanism simplifies the process of bootstrapping liquidity for new markets. It also provides protection against volatility and market manipulation. This feature enables projects to establish markets for their tokens and gain exposure to the prices of other assets with ease.
Where to buy MAV Token
You can find MAV Tokens here at MEXC! We are listing MAV/USDT in our Innovation Zone!
What is the Price of MAV Tokens?
The MAV token is currently trading MEXC for $0.3957! It has a fully diluted market cap of $791,362,123. It also has a 24-hour trading volume of $14,076,713. You can check the live price of their token right here!
How to buy MAV Tokens on MEXC
You can buy MAV Tokens on MEXC by following the steps:
- Log in to your MEXC account and click [Trade]. Click on [Spot].
- Search “MAV” using the search bar to see the available trading pairs. Take MAV/USDT as an example.
- Scroll down and go to the [Spot] box. Enter the amount of MAV you want to buy. You can choose from opening a Limit order, a Market order, or a Stop-limit order. Take Market order as an example. Click [Buy MAV] to confirm your order. You will find the purchased MAV in your Spot Wallet.
You can find a detailed guide on how to buy MAV Tokens here.
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