Decentralized exchange (DEX) Maverick Protocol has launched an innovative "surgical incentivization" feature called "boosted positions," which allows users to incentivize liquidity targeted to a specific distribution on its Dynamic Distribution Automated Market Maker (AMM).
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This feature offers a new level of precision and efficiency in liquidity incentivization, as users can incentivize each liquidity position instead of the entire liquidity pool. Maverick Protocol is currently the only DEX offering industry-leading capital efficiency and the ability to boost targeted liquidity positions in liquidity pools.
With this new feature, users can create a position using any of Maverick's modes and arbitrary distributions and aim incentives directly at that position within a larger pool. Liquidity providers (LPs) can now earn both fees and incentives, which provides a more efficient way to stay at peg, an effective way to build a price wall for long-tail tokens, and more opportunities to experiment with incentivizing liquidity.
Maverick CTO Bob Baxley said, "Protocols have gotten smarter about liquidity and realize they need to direct liquidity to positions where it is most needed."
He also added that this feature is particularly important for liquidity staking protocols competing for millions of unstaked ETH following April's Shanghai upgrade, a period he believes will become known as the "Liquid Staking Wars." With this upgrade, Maverick expects to be the automated market maker of choice for protocols and liquidity providers post-Shanghai.
External protocols can 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 its launch on March 8, Maverick Protocol has been ranked as a top 5 DEX on Ethereum on DeFiLlama.
The protocol has secured more than $20M in total value locked (TVL) and achieved an active capital or "capital efficiency" rate of up to 374%.
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 Maverick Protocol's Phase II upgrade. To learn more about Maverick or get started on the platform, visit mav.xyz.
Follow them on Twitter @MavProtocol to stay up to date with the latest news.
Maverick Protocol Launches the 'Precision Liquidity Incentive Tool' to Boost Capital Efficiency | Blockster
blockster.com
02 May 2023 12:53, UTC