Maverick - Decentralised AMM Protocol where liquidity follows the price
After the Uniswap v3 launch the concentrated liquidity brought higher profitability for liquidity providers at the cost of going out of price range so that your liquidity is no longer used in swaps and you as a liquidity provider do not earn any fees.
Maverick AMM with its novel approach offers a solution for this problem so that your concentrated liquidity literally follows the price if you are out of range.
According to Maverick AMM white paper four modes are built into the protocol:
- Mode Right - liquidity moves with price as price increases, but doesn’t move when price decreases
- Mode Left - liquidity moves with price as price decreases, but doesn’t move when price increases
- ModeBoth - liquidity moves with price as it increases and decreases
- Mode Static - liquidity does not move
The New Maverick AMM approach definitely deserves attention and will help LPs be profitable as a simple static LP-providing approach is hardly profitable.
As far as I understand from the white paper moving liquidity comes at a transaction cost which is paid by swappers, not liquidity providers which is good for LPs.
Enjoy white paper and try Maverick AMM protocol.
