TL;DR
You may not know it but there are a lot of technical factors that go into the design of Automated Market Makers (AMM). This is the reason why many have come and gone while others have solidified themselves as the industry standard. Maverick Protocol has a new approach for efficient market-making that’s designed around mitigating slippage and providing a better experience for traders. In that sense, Maverick Protocol is actually bringing something new to the table. This is a rare situation given that most new AMMs simply copy-paste the Uniswap code and sell it off as something new. This might work in the short term. But ultimately it changes nothing for the industry. I’m happy to say that’s not the case with Maverick Protocol.
Many people believe that their interactions with a decentralized exchange (DEX) are a simple and straightforward process. On our end, we simply choose the asset we want to buy and swap it for one that we’re willing to part with. That’s because AMMs are designed to keep things as easy as possible. Too many clicks for the intended result or other technical hindrances and you lose people to an easier product. But, there’s a fine line between what’s good for traders and what’s beneficial to liquidity providers. With both parties playing equally important roles in an AMM. Without traders, there’s no activity, and without liquidity providers, there are no assets. This means the key to a good AMM lies in finding that sweet spot between these two parties. Well, It just so happens that creating a platform beneficial to everyone is the sole focus of Maverick Protocol and the reason it’s time to review the project in more detail.
What is Maverick Protocol?
Maverick Protocol began its journey in late 2021 with the announcement of a new dynamically distributed automated market maker. Made possible through Maverick’s Automatic Liquidity Placement (ALP) technology. The announcement also came with the release of Maverick’s initial Testnet. Nothing much else was said about the project until early 2022 when they announced the completion of an $8 Million funding round to kick things off. Led by Pantera Capital, this is what first put Maverick on the map for most traders. Touting this new AMM design and the ability to trade mid-cap assets like never before. People began showing increased interest in the product and its promises because Maverick wasn’t you’re ordinary AMM. With its ALP technology Maverick acts as a settlement layer, derivatives market, aggregator, and DAO all in one. Designed around optimizing other existing AMMs as well as its own.
Around this time Maverick released its Testnet Reward Program. Designed to increase community interaction with the protocol and distribute some minor rewards for participation. This mostly fell flat due to the program being centered around promoting Maverick through social media instead of testing the quality of the product. It should have been called the created content program instead. Slowly but surely Maverick rolled out product upgrades. Allowing it to reach over $2 Billion in on-chain volume by March of this year. This was achieved through Maverick’s pre-season liquidity program which promised traders and governance participants a piece of the proverbial pie. You can read more about this in Defi…
Head of Research Jesse is a passionate seeker of truth who enjoys educating others about Bitcoin. As a free thinker and 2nd amendment advocate, Jesse believes each individual has the right to monetary freedom. “The swarm is headed towards us” -Satoshi Nakamoto
