Maverick

Market Making

Maverick Protocol is an innovative AMM that allows users and protocols to shape liquidity around the market price with high precision and boost their positions with extra rewards.

Risk Rating
Average
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Maverick is a decentralized exchange with an innovative design to maximize capital efficiency by automating the concentration of liquidity as prices move.
What we like less
The project's audits indicate an owner role that is a single point of failure as it is not behind a multisig or timelock.
What it means for you
Allows you to follow the price of an asset in a single direction, effectively making a bet on the price trajectory of a specific token.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: MAV
  • Tags: Market Making
Key Metrics
  • TVL: $19.5M (Rank #125)
  • TVL Ranking by Market Making: #0
  • Blockchain: Ethereum, zkSync Era, Base, Binance
  • Chain TVL
    • Ethereum: $12.8M
    • zkSync Era: $5.48M
    • Base: $783.77K
    • Binance: $397.25K
Risk Assessment
Average
Protocol Code Quality
  • Code reviewed by several experienced auditors including CertiK, Zellic, ABDK, and Dedaub
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Latest protocol version launched in 2023; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Core contracts can be upgraded with just an EOA wallet
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to decentralized exchanges (DEXs), such as impermanent loss
Things to know about Maverick

How Maverick works

Maverick operates as an Automated Market Maker (AMM) platform where Liquidity Providers (LPs) supply liquidity to pools. These pools consist of two tokens, and LPs can provide liquidity in both tokens (or in some cases, just one, known as "single-sided liquidity"). The liquidity is distributed across various bins, each representing different price ranges within a pool. The active bin - the one reflecting the current price point - is where swaps occur, and it's the only bin where LPs collect fees. Maverick's unique feature is its four liquidity modes (Mode Right, Mode Left, Mode Both, Mode Static), each catering to different liquidity strategies and market movements. These modes use Maverick's intelligent liquidity-shifting technology to adjust the LP's position in response to market changes, optimizing their potential for earning fees while minimizing risks like impermanent loss.

How Maverick makes money

Maverick generates revenue by charging traders a fee for each swap they perform against the liquidity pools. When a pool is created, the deploying LP sets a fee tier, which determines the percentage of the swap value charged to the trader. This fee is a potential source of income for Maverick, as it could retain a portion of these fees as revenue at some point via governance. Additionally, the platform may also earn from other services or features it offers to traders and liquidity providers.

How you make money on Maverick

As an LP on Maverick, you make money primarily through trading fees. When you supply liquidity to a pool, you earn a portion of the fees charged to traders who swap against your provided liquidity. Your earnings are proportional to your share in the active bin of the pool. Furthermore, any fees you earn are auto-compounded back into the pool, meaning your position and potential earnings grow over time. The choice of liquidity mode (Right, Left, Both, Static) and your strategy in positioning your liquidity across different bins and price ranges can significantly influence your earnings, allowing you to tailor your approach based on market conditions and your risk appetite.