NEW YORK--(BUSINESS WIRE)--Maverick Protocol, a decentralized exchange (“DEX”) that enables greater capital efficiency than current market leaders, has launched a “surgical incentivization” feature, which enables protocols to incentivize liquidity targeted to a specific distribution on its Dynamic Distribution Automated Market Maker (AMM). This feature–called boosted positions–is expected to unlock a new degree of precision and efficiency in liquidity incentivization, as users can incentivize each liquidity position rather than the entire liquidity pool. Maverick Protocol is the only DEX offering industry-leading capital efficiency and the ability to boost targeted liquidity positions in liquidity pools.
Users can now create a position using any of Maverick’s modes and arbitrary distributions, and then aim 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 accuracy of these incentives provides a more efficient way to stay at peg, an effective way to build a price wall for longtail tokens, and generally more opportunities to experiment with incentivizing liquidity.
“Protocols have gotten smarter about liquidity and realize they need to direct liquidity to positions where it is most needed,” said Maverick CTO Bob Baxley. “This is particularly important for liquidity staking protocols competing for millions of unstaked ETH following April’s Shanghai upgrade, a period 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 providers post-Shanghai.”
Users like external protocols will be able to add token incentives to a boosted position using any token they want. Incentives added to a boosted position are distributed to LPs in that boosted position over a period between three and thirty days, at the discretion of the incentivizer. 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 shifts, resulting in increased capital efficiency.
Since Maverick’s launch on March 8, the protocol has been ranked as a top 5 DEX on Ethereum on DeFiLlama. Maverick secured more than $20M in total value locked (“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 with the platform, with liquidity pools like wstETH-ETH, cbETH-ETH, sfrxETH-ETH, and swETH reaching a combined over $13M in TVL.
The liquidity pool incentivization tool is part of a Phase II upgrade of the protocol. To get started on Maverick or learn more, visit mav.xyz.
About Maverick Protocol
Maverick Protocol is a new infrastructure for decentralized finance, built to bring higher 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.
