Interpreting the Maverick Protocol DeFi Protocol

Understanding the Maverick Protocol DeFi

Maverick Protocol is an exchange platform with high efficiency liquidity, and its governance token MAV has shown a growth trend. Cryptocurrency KOL 2Lambroz.eth introduced this project from the aspects of liquidity model, token economics, and participation strategy.

Maverick AMM is an AMM model launched by Mav Protocol. It introduces the concept of directional LP, which has four modes: 1) Mode Right (long mode): LP token price is believed to rise and users are willing to buy at any price. This is equivalent to dollar-cost averaging and requires paying fees. 2) Mode Left (short mode): LP price is believed to drop. 3) Mode Both (bi-directional mode): The cost is enough to offset the impermanent loss and the risk of price fluctuations, and price fluctuations are predicted to be small. Mode Static (static mode): Similar to Trade Joe’s liquidity provision.

Mav Protocol completed its listing strategy and marketing on time. It incentivized airdrop hunters to provide LP and trade, and migrated to zkSync at the best time when trading volume, hype, and airdrop hunters peaked. It was able to push TVL to 6 million within 10 days of going live. There are three strategies: 1) Participate in the BN B’s launchBlockingd farming by providing liquidity and obtaining rewards in the launchBlockingd project of BNB. 2) Purchase MAV tokens and believe that the token has potential because Binance’s influence as an exchange may push up the token price. 3) Choose to temporarily exit the market to avoid market risks and focus on earning profits by participating in MAV token liquidity mining.

Reference: https://twitter.com/2lambro/status/1669163994605838336

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