Maverick Protocol Launches Decentralized Exchange Powered by its Dynamic Automated Market Maker (AMM)

The Maverick AMM introduces the novel concept of a Dynamic Distribution AMM, which provides greater capital efficiency and control for liquidity providers

Maverick Protocol, a decentralized exchange (DEX) enabling participants to achieve greater capital efficiency than current market leaders, has launched its Automated Market Maker (AMM) on Ethereum mainnet. Maverick AMM represents a new kind of AMM–the Dynamic Distribution AMM–an innovative smart contract that moves liquidity on behalf of liquidity providers (LPs) as the price in the AMM shifts, resulting in increased capital efficiency.

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Maverick AMM is automated, fully decentralized, and designed to facilitate a variety of directional and high capital-efficiency strategies for LPs. By automating the liquidity-movement process, Maverick AMM saves LPs the expense and complexity of paying gas to manually move their liquidity positions, and helps them capture more transaction fees compared to manual liquidity-position movements. LPs have the option of choosing to add liquidity with a directional price belief: up, down, or sideways. If the market moves in the chosen direction, the LP will maximize their capital efficiency, thereby increasing the trading fees they collect.

“If LPs in existing AMMs want to keep their capital as active as possible, they are forced to adjust their liquidity positions hourly, costing them time and gas,” said Bob Baxley, Chief Technology Officer at Maverick Protocol. “By giving LPs the option to choose if and how their liquidity moves with price in a given pool–something that no other AMM does natively–Maverick AMM enables markets to run more efficiently, resulting in more consistent fee generation for LPs.”

Maverick is deeply integrating liquid staking protocol Lido’s liquid staking tokens to bring them increased capital efficiency at the same time as additional yield to Maverick’s LPs. The predominant ETH-based quote asset on Maverick is Lido’s wrapped liquid staking token, wstETH. LPs who choose to use wstETH instead of ETH receive extra APR, since wstETH accrues staking rewards.

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“I am excited to see Maverick join the Lido ecosystem and see it bringing even more utility to wstETH holders,” said Carvas, core contributor at Lido. “With its impressive innovations in liquidity provision, I see Maverick becoming a go-to DEX for many new wstETH pairs.”

Maverick’s wstETH-oriented pools will do more than just increase liquidity for Lido’s community. With automated liquidity movement and customizable distributions, Maverick AMM offers users a greater set of opportunities to put liquid staking tokens to work.

“Lido has always been dedicated to improving the capital efficiency of staked positions, and Maverick opens up a new landscape of ways to do that,” continued Carvas. “I am particularly excited about Maverick pushing wstETH as a base pair throughout the DEX, and see more and more tokens and projects opting to pair their liquidity against it in the near future.”

In addition to Lido, Maverick is partnering with decentralized borrowing protocol Liquity to help their community achieve better capital control of LUSD liquidity. Maverick is also partnering with the leading platform for building web3 community, Galxe, to facilitate deep on-chain GAL liquidity. At launch, liquidity providers from the Liquity community will support a LUSD-wstETH pool and Galxe will deploy a GAL-wstETH pool.

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