March 8, 2023
The most decentralized stablecoin is now available on an innovative dynamic AMM on mainnet; introducing Maverick.
Maverick Protocol is a new decentralized finance infrastructure featuring LUSD in liquidity pools. It is powered by a revolutionary Automated Market Maker (AMM) that aims to provide higher capital efficiency and greater capital control to traders, liquidity providers, DAO treasuries, and developers.
The Maverick AMM automates the liquidity rebalancing process, which saves liquidity providers (LPs) the complexity and expense of paying gas to move their liquidity positions manually, allowing them to remain in range more often and thus to capture more transaction fees compared to positions managed manually.
Liquidity providers can provide liquidity based on a directional price belief: up, down, or sideways. If the market moves in the chosen direction, the liquidity provider can maximize their capital efficiency.
The Maverick AMM features include: custom liquidity pool distributions, low liquidity pool maintenance, and increased capital efficiency.
Liquidity Providers no longer have to stake their liquidity in a uniform price range, and they can benefit from automatic concentrated liquidity fee compounding. The smart contract can automatically reposition their liquidity distribution to track the price, allowing their distribution to stay in range more often.
These technological innovations represent a shift in the way smart contracts manage liquidity. Maverick is the first Dynamic Distribution AMM, capable of automating liquidity strategies that previously required daily maintenance or the use of metaprotocols.
The first three liquidity pools involving LUSD that will be launching on Maverick are the:
You can see all LUSD pools on Maverick here.
Maverick’s highly customizable liquidity structure is a perfect fit for LUSD/ETH pools, as it enables much higher liquidity efficiency than UniswapV2-type distributions, with a similar availability (depending on the chosen range).
On top the LUSD/wETH pool, a LUSD/wstETH is also available, as part of a joint effort with the Lido Finance team; it’s also the first time LUSD will be paired with an ETH liquid stake derivative.