DeFi

·

January 31, 2024

Maverick v1 liquidity on Matcha 

Anthony Allen

Get even better value when you swap tokens on Ethereum and Base with the added liquidity of Maverick, one of the newest liquidity sources aggregated by Matcha.

Maverick v1 is a liquidity source available on Matcha that helps get you the best prices when you swap on Ethereum and Base networks. Maverick is a Dynamic Automated Market Maker (AMM) that lets traders earn trading fees by connecting their assets into liquidity pools which provide liquidity to the wider market.

Matcha now aggregates 24 liquidity sources on Ethereum and 8 liquidity sources on Base to ensure you always get the lowest price available. Using smart order routing, Matcha calculates the most efficient path across all available liquidity sources to maximize the number of tokens you get.

Continuing to grow our list of providers ensures that you get the deepest, most competitive liquidity in DeFi and enables the best experience on swaps, limit orders and bridging tokens cross-chain.

What is Maverick? 

Maverick Protocol is a leading provider of smart contract solutions in DeFi, focusing on enabling projects to customize, automate, and incentivize liquidity effectively, powered by Maverick AMM.

Maverick is a relatively new liquidity source launched in 2022 and supported by several leading funds including Pantera Capital, Jump Crypto, Circle Ventures, Gemini, and more. It is active on four blockchain networks: Ethereum, Base, BNB Smart Chain, and zkSync Era, though only Base and Ethereum liquidity is currently available on Matcha.  

Maverick v1 has seen a 30-day volume of $5.76m on Ethereum and $6.78m on Base through 0x Protocol and is the second largest liquidity provider on Base integrated by 0x Protocol

Maverick v1 stands out from the competition for being built on the first Dynamic Distribution AMM. This name is derived from its ability to automate liquidity strategies, helping to keep pooled liquidity concentrated within a range that is most capital efficient. This is intended to enable more liquid markets, better trade prices for traders, and more fees earned by providers.

What is Matcha?

Matcha is a DEX aggregator built by 0x that lets you trade over 5 million tokens across 9 networks. It finds the best value on token swaps by routing trades through 100+ liquidity sources and lets you create decentralized limit orders and swap across chains directly to the token of your choosing on 7 networks including Ethereum and Base.

Trade tokens on Matcha
Swap tokens on Base and 8 other networks with Matcha.

Matcha has facilitated well over $62B in 3.5M+ trades since launching in 2020. 0x was founded in 2017 by Will Warren and Amir Bandeali, receiving $109M in investment to date. The 0x team has contributed to key DeFi technologies like WETH, the ERC721 NFT standard and more.

How Maverick works

By keeping liquidity providers’ (LPs) assets concentrated to a narrow price range and trailing that range as the price moves, Maverick optimizes for deeper liquidity at the current market price, reducing slippage and improving pricing. 

Trade on Base and Ethereum now!

Maverick also allows LPs to choose from a variety of modes to automate how liquidity is managed in a way they prefer. 

Dynamic liquidity distribution 

The Dynamic Distribution AMM model is differentiated from a Constant Product AMM like Uniswap v2, or a Range AMM like Uniswap v3 or v4, by automatically following trading activity and distributing liquidity providers’ (LPs) allocated funds where they are most capital efficient. 

Maverick liquidity pool interface
Adding liquidity to Maverick pools.

A Constant Product AMM distributes liquidity across the full price band, meaning LPs assets are spread thinly and most will be allocated well outside the asset’s current price range, reducing overall fee earnings. A Range AMM can concentrate assets within a range of, for example, ±5% of the market price, maximizing profits as long as the price remains within that range, but earning nothing if the price moves beyond it. 

Maverick improves upon the capital efficiency of a Range AMM by automatically adjusting the range in a way that follows price movements. While other Range AMMs allow users to do this manually, Maverick’s model aims to eliminate the high gas costs related to manual adjustments.

Liquidity strategies 

Modes are pre-configured liquidity strategies in Maverick which allow LPs to easily automate how capital is allocated. Mode Right will follow the price up only, acting within a preset range, while Mode Left follows the price down. Mode Both will follow the price as it fluctuates in either direction. Mode Static will not follow the price, resembling a Range AMM discussed above.  

Liquidity strategy examples
Liquidity modes compared. Image source: Maverick

Maverick AMM also supports arbitrary liquidity distributions, meaning that LPs no longer have to settle for flat ranges or open multiple liquidity positions to meet their needs. A single liquidity position in Maverick can be as simple or as complex as a user desires.

How liquidity providers benefit from dynamic distribution 

Maverick AMM is designed to enable LPs to deploy any liquidity strategy with maximized flexibility and efficiency. For example, LPs can chase maximal capital efficiency by automatically following price movements while keeping their assets concentrated within a specified range. How these assets are distributed can be chosen from presets or customized by the LP themselves as needed. 

The main benefit to LPs is that liquidity can automatically follow price movements, saving time and gas costs. How this automation is executed is up to the LP, with four Modes to choose from as discussed above.

Additionally, they can choose to only follow the price in one direction, which effectively increases the LPs exposure to one pooled asset over the other in line with their expectations for future price movement, as opposed to other AMMs which assume an equal weighting, which may lead to impermanent loss. 

Maverick tokens

MAV token 

MAV is the native utility token used by Maverick for staking and voting. It is an ERC-20 token tradable on Ethereum, Base, zkSync Era, and BNB Smart Chain. 

veMAV token

Vote-escrowed MAV (veMAV) is a non-transferable governance token that is issued when MAV is staked. It dictates voting rights for the Maverick v1 protocol. The amount of veMAV received is calculated from the amount of MAV staked and duration, which extends from 1 week up to 4 years. VeMAV is burned when MAV is unstaked. 

LP NFTs on Maverick

Liquidity providers mint a Maverick Position NFT at the time when they first add liquidity to the AMM. All LP balances on Maverick are recorded by this NFT, and any further position opened by the LP is also tied to it, which enables LPs to manage multiple positions - including custom distributions - without needing to mint multiple NFTs.  

Growing liquidity on Matcha

Maverick is one of well over 100 liquidity sources already on Matcha! Deep liquidity means you get the best prices any time you trade. With 24 sources of liquidity on Ethereum and 8 on Base, there’s no shortage of options for faster, cheaper trades!

Choosing liquidity sources
Customize Liquidity Sources using the ⚙️ Trade settings menu.

Keep an eye out for more liquidity source announcements as we continue to expand our industry-leading liquidity through the 0x Swap API. Start trading on Matcha today!

Liquidity from 100+ DEXs. Best prices in DeFi.
Contents
Subscribe to our newsletter
By submitting you're confirming that you agree with our Terms and Conditions.
Yay! You’re signed up.
Oops! Something went wrong, but it's not your fault.
DeFi

·

January 25, 2024

Maverick v1 liquidity on Matcha 

Maverick new liquidity source on Matcha

Get even better value when you swap tokens on Ethereum and Base with the added liquidity of Maverick, one of the newest liquidity sources aggregated by Matcha.

Maverick v1 is a liquidity source available on Matcha that helps get you the best prices when you swap on Ethereum and Base networks. Maverick is a Dynamic Automated Market Maker (AMM) that lets traders earn trading fees by connecting their assets into liquidity pools which provide liquidity to the wider market.

Matcha now aggregates 24 liquidity sources on Ethereum and 8 liquidity sources on Base to ensure you always get the lowest price available. Using smart order routing, Matcha calculates the most efficient path across all available liquidity sources to maximize the number of tokens you get.

Continuing to grow our list of providers ensures that you get the deepest, most competitive liquidity in DeFi and enables the best experience on swaps, limit orders and bridging tokens cross-chain.

What is Maverick? 

Maverick Protocol is a leading provider of smart contract solutions in DeFi, focusing on enabling projects to customize, automate, and incentivize liquidity effectively, powered by Maverick AMM.

Maverick is a relatively new liquidity source launched in 2022 and supported by several leading funds including Pantera Capital, Jump Crypto, Circle Ventures, Gemini, and more. It is active on four blockchain networks: Ethereum, Base, BNB Smart Chain, and zkSync Era, though only Base and Ethereum liquidity is currently available on Matcha.  

Maverick v1 has seen a 30-day volume of $5.76m on Ethereum and $6.78m on Base through 0x Protocol and is the second largest liquidity provider on Base integrated by 0x Protocol

Maverick v1 stands out from the competition for being built on the first Dynamic Distribution AMM. This name is derived from its ability to automate liquidity strategies, helping to keep pooled liquidity concentrated within a range that is most capital efficient. This is intended to enable more liquid markets, better trade prices for traders, and more fees earned by providers.

What is Matcha?

Matcha is a DEX aggregator built by 0x that lets you trade over 5 million tokens across 9 networks. It finds the best value on token swaps by routing trades through 100+ liquidity sources and lets you create decentralized limit orders and swap across chains directly to the token of your choosing on 7 networks including Ethereum and Base.

Trade tokens on Matcha
Swap tokens on Base and 8 other networks with Matcha.

Matcha has facilitated well over $62B in 3.5M+ trades since launching in 2020. 0x was founded in 2017 by Will Warren and Amir Bandeali, receiving $109M in investment to date. The 0x team has contributed to key DeFi technologies like WETH, the ERC721 NFT standard and more.

How Maverick works

By keeping liquidity providers’ (LPs) assets concentrated to a narrow price range and trailing that range as the price moves, Maverick optimizes for deeper liquidity at the current market price, reducing slippage and improving pricing. 

Trade on Base and Ethereum now!

Maverick also allows LPs to choose from a variety of modes to automate how liquidity is managed in a way they prefer. 

Dynamic liquidity distribution 

The Dynamic Distribution AMM model is differentiated from a Constant Product AMM like Uniswap v2, or a Range AMM like Uniswap v3 or v4, by automatically following trading activity and distributing liquidity providers’ (LPs) allocated funds where they are most capital efficient. 

Maverick liquidity pool interface
Adding liquidity to Maverick pools.

A Constant Product AMM distributes liquidity across the full price band, meaning LPs assets are spread thinly and most will be allocated well outside the asset’s current price range, reducing overall fee earnings. A Range AMM can concentrate assets within a range of, for example, ±5% of the market price, maximizing profits as long as the price remains within that range, but earning nothing if the price moves beyond it. 

Maverick improves upon the capital efficiency of a Range AMM by automatically adjusting the range in a way that follows price movements. While other Range AMMs allow users to do this manually, Maverick’s model aims to eliminate the high gas costs related to manual adjustments.

Liquidity strategies 

Modes are pre-configured liquidity strategies in Maverick which allow LPs to easily automate how capital is allocated. Mode Right will follow the price up only, acting within a preset range, while Mode Left follows the price down. Mode Both will follow the price as it fluctuates in either direction. Mode Static will not follow the price, resembling a Range AMM discussed above.  

Liquidity strategy examples
Liquidity modes compared. Image source: Maverick

Maverick AMM also supports arbitrary liquidity distributions, meaning that LPs no longer have to settle for flat ranges or open multiple liquidity positions to meet their needs. A single liquidity position in Maverick can be as simple or as complex as a user desires.

How liquidity providers benefit from dynamic distribution 

Maverick AMM is designed to enable LPs to deploy any liquidity strategy with maximized flexibility and efficiency. For example, LPs can chase maximal capital efficiency by automatically following price movements while keeping their assets concentrated within a specified range. How these assets are distributed can be chosen from presets or customized by the LP themselves as needed. 

The main benefit to LPs is that liquidity can automatically follow price movements, saving time and gas costs. How this automation is executed is up to the LP, with four Modes to choose from as discussed above.

Additionally, they can choose to only follow the price in one direction, which effectively increases the LPs exposure to one pooled asset over the other in line with their expectations for future price movement, as opposed to other AMMs which assume an equal weighting, which may lead to impermanent loss. 

Maverick tokens

MAV token 

MAV is the native utility token used by Maverick for staking and voting. It is an ERC-20 token tradable on Ethereum, Base, zkSync Era, and BNB Smart Chain. 

veMAV token

Vote-escrowed MAV (veMAV) is a non-transferable governance token that is issued when MAV is staked. It dictates voting rights for the Maverick v1 protocol. The amount of veMAV received is calculated from the amount of MAV staked and duration, which extends from 1 week up to 4 years. VeMAV is burned when MAV is unstaked. 

LP NFTs on Maverick

Liquidity providers mint a Maverick Position NFT at the time when they first add liquidity to the AMM. All LP balances on Maverick are recorded by this NFT, and any further position opened by the LP is also tied to it, which enables LPs to manage multiple positions - including custom distributions - without needing to mint multiple NFTs.  

Growing liquidity on Matcha

Maverick is one of well over 100 liquidity sources already on Matcha! Deep liquidity means you get the best prices any time you trade. With 24 sources of liquidity on Ethereum and 8 on Base, there’s no shortage of options for faster, cheaper trades!

Choosing liquidity sources
Customize Liquidity Sources using the ⚙️ Trade settings menu.

Keep an eye out for more liquidity source announcements as we continue to expand our industry-leading liquidity through the 0x Swap API. Start trading on Matcha today!

Liquidity from 100+ DEXs. Best prices in DeFi.

Subscribe for an instantly better inbox

By submitting you're confirming that you agree with our Terms and Conditions.
Yay! You’re signed up.
Oops! Something went wrong while submitting the form.