The number of tokens trading today is astonishing many but wait for how many tokens will be out there in 3–4 years time

“Everything will be tokenized”

If we go by the “everything will be tokenized” thesis,then there is a possibility of having millions if not billions of tokens trading out.

Considering the various tokens out there,we need an AMM that balances liquidity providers interest with those of traders, Maverick AMM is the solution.

The concept of markets have existed since time immemorial, someone(seller) has some item to exchange for cash or something else, he meets a buyer who is willing to satisfy his desires. The buyer on the other hand has a desire to acquire something,so he needs the seller.

Since a buyer needs a seller and a seller needs a buyer, the concept of markets became necessary.

A market is a place(physical or virtual) where buyers meet sellers and vice versa.

So in the above image, a buyer has $USDC token but wishes to buy some $ENJ tokens, on the other hand a seller has the $ENJ tokens and wants to liquidate them for $USDC.

If there were no markets, the buyer and seller will go to different places seeking to find each other.

In crypto, there exist two kinds of markets as according to operations and structure, they are centralized markets(exchanges) and decentralized markets.

Centralized exchanges(CEX) act like a business, most juridsction require CEX operators to have some business or regulatory licence while the Decentralized exchange operates in a permissionless way, they are a Dapps(decentralized apps) that consists of several smart contracts deployed on the blockchain, this dapp can be accessed from a front end. The execution engine of such dapp is onchain.

In this article, we will focus on decentralized exchanges, how they have evolved so far and how a new kid in the block(Maverick Protocol) is taking DEX experience to a whole new level.

AMMs are revolutionary in design, the very first and popular implementation of AMM was Uniswap with their v1. Before Uniswap v1, many DEX exist ranging from the likes of EtherDelta, IDEX etc

Many of them tried to use some decentralized order books model, while they took off to a certain limit, the most popular criticism was these exchanges lack depth due to low liquidity.

When you keep your tokens in a CEX, they can take those tokens and match a corresponding open order but for DEX, they could not, because the tokens were still in the owner’s custody, AMM changed all that.

So what are AMMs and how do they work?

Automated Market Markers(AMM) are completely “automated” on-chain systems that acts as a counterparty for users who wishes to swap a token for another. They are a set of smart contracts that are always available.

In the case of CEX, they have market markers as an intermediary while DEX have smart contracts as the intermediary and as we have seen “code is law”.

Once an AMM product launches, anyone can permissionlessly create a liquidity pool, then other users(Liquidity providers) can put their tokens into this pool to earn “trading fees” and/or liquidity mining rewards in whatever form, now we have Liquidity which a user can trade against.

Some advantages of AMMs include : permissionless trading without 3rd parties, lower trading fees unlike CEX that have lots of overheard costs, more liquidity as users are incentivized to pool their tokens.

However some disadvantages include price slippages occurring during trading when the pool cannot support the volume of trade, impermanent loss for liquidity providers, bad UI/UX, many are unaudited and could be exploited due to undiscovered bugs and many are outright scams.

AMMs have evolved a lot

Before Uniswap v3 : to solve the problem of liquidity,a constant product AMM was invented, here LP providers just pooled tokens together in order to earn rewards.

There were issues like high price slippage and impermanent loss.

In these AMMs, liquidity was always available irrespective of the price of the asset.

V3 : This implementation is all about “concentrated liquidity”, now when LPs are pooling tokens ,they will have to determine a price range where their tokens will be available for trading. It’s like giving your car to a car dealer instructing him to sell your call within $X to $Y price range.

The problem with this model is that when price moves out of your “targeted region”, your capital is almost non existent(will not be part of the liquidity at such time), this also result in low capital efficiency.

Maverick AMM : Maverick innovates on the V3 model by offering users the flexibility of automating their liquidity positions.

It offers a dynamic liqudity pooling AMM, upon pooling,you can set a custom distribution for your LP positions, also the cost of auto rebalancing is low, it offers more capital efficiency and it supports auto compounding of LP rewards.

In V3 AMMs, to reconfigure your LP position,it requires you time, gas etc to move it around, such is not efficient, imagine reconfiguring your position this week, then again next week etc, imagine the toll it will take on your time , the gas cost etc.

There are different models for Maverick AMM LP positions

Mode static : This mode functions like AMMs that existed before V3, they offer static liquidity positions irrespective of price movements. You can say they are always available LP positions.

You can build custom token launchpads on top of the Mode static module.

Mode Right : This mode puts your LP positions to use ONLY when there is a price increase not otherwise.

Mode Left : This mode puts your LP positions to use ONLY when there is a price decrease not otherwise.

Mode both : This mode puts your LP positions to use in every price range. While LP stakers liquidity in Mode Left are exempted from the general liquidity in price drops, Mode Both users quickly fill in the gap,earn the fees, same happens when price increases.

The token has some functions ranging from incentive for liquidity providers, governance rights, anyone can vote on proposals or even submit a proposal.

There are a number of people that can use Maverick ranging from treasuries, traders and liquidity providers.

Liquidity providers : The automatic liquidity provisioning and distribution ensures that users have high capital efficiency, earn more fees and save time and gas with LP redistribution since its automatic.

**Traders : High price slippages are gone, they will get better rates for their money and pay less fees when trading

Maverick has a solid team of blockchain builders with people onboard having experience working with giants like Abra, TrueFI, Bittorent etc.

The exchange is also backed by some of the best VCs in the space, Pantera capital, Jump crypto etc.

Website | Maverick AMM | Twitter | Discord

The number of tokens trading today is astonishing many but wait for how many tokens will be out there in 3–4 years time

“Everything will be tokenized”

If we go by the “everything will be tokenized” thesis,then there is a possibility of having millions if not billions of tokens trading out.

Considering the various tokens out there,we need an AMM that balances liquidity providers interest with those of traders, Maverick AMM is the solution.

The concept of markets have existed since time immemorial, someone(seller) has some item to exchange for cash or something else, he meets a buyer who is willing to satisfy his desires. The buyer on the other hand has a desire to acquire something,so he needs the seller.

Since a buyer needs a seller and a seller needs a buyer, the concept of markets became necessary.

A market is a place(physical or virtual) where buyers meet sellers and vice versa.

So in the above image, a buyer has $USDC token but wishes to buy some $ENJ tokens, on the other hand a seller has the $ENJ tokens and wants to liquidate them for $USDC.

If there were no markets, the buyer and seller will go to different places seeking to find each other.

In crypto, there exist two kinds of markets as according to operations and structure, they are centralized markets(exchanges) and decentralized markets.

Centralized exchanges(CEX) act like a business, most juridsction require CEX operators to have some business or regulatory licence while the Decentralized exchange operates in a permissionless way, they are a Dapps(decentralized apps) that consists of several smart contracts deployed on the blockchain, this dapp can be accessed from a front end. The execution engine of such dapp is onchain.

In this article, we will focus on decentralized exchanges, how they have evolved so far and how a new kid in the block(Maverick Protocol) is taking DEX experience to a whole new level.

AMMs are revolutionary in design, the very first and popular implementation of AMM was Uniswap with their v1. Before Uniswap v1, many DEX exist ranging from the likes of EtherDelta, IDEX etc

Many of them tried to use some decentralized order books model, while they took off to a certain limit, the most popular criticism was these exchanges lack depth due to low liquidity.

When you keep your tokens in a CEX, they can take those tokens and match a corresponding open order but for DEX, they could not, because the tokens were still in the owner’s custody, AMM changed all that.

So what are AMMs and how do they work?

Automated Market Markers(AMM) are completely “automated” on-chain systems that acts as a counterparty for users who wishes to swap a token for another. They are a set of smart contracts that are always available.

In the case of CEX, they have market markers as an intermediary while DEX have smart contracts as the intermediary and as we have seen “code is law”.

Once an AMM product launches, anyone can permissionlessly create a liquidity pool, then other users(Liquidity providers) can put their tokens into this pool to earn “trading fees” and/or liquidity mining rewards in whatever form, now we have Liquidity which a user can trade against.

Some advantages of AMMs include : permissionless trading without 3rd parties, lower trading fees unlike CEX that have lots of overheard costs, more liquidity as users are incentivized to pool their tokens.

However some disadvantages include price slippages occurring during trading when the pool cannot support the volume of trade, impermanent loss for liquidity providers, bad UI/UX, many are unaudited and could be exploited due to undiscovered bugs and many are outright scams.

AMMs have evolved a lot

Before Uniswap v3 : to solve the problem of liquidity,a constant product AMM was invented, here LP providers just pooled tokens together in order to earn rewards.

There were issues like high price slippage and impermanent loss.

In these AMMs, liquidity was always available irrespective of the price of the asset.

V3 : This implementation is all about “concentrated liquidity”, now when LPs are pooling tokens ,they will have to determine a price range where their tokens will be available for trading. It’s like giving your car to a car dealer instructing him to sell your call within $X to $Y price range.

The problem with this model is that when price moves out of your “targeted region”, your capital is almost non existent(will not be part of the liquidity at such time), this also result in low capital efficiency.

Maverick AMM : Maverick innovates on the V3 model by offering users the flexibility of automating their liquidity positions.

It offers a dynamic liqudity pooling AMM, upon pooling,you can set a custom distribution for your LP positions, also the cost of auto rebalancing is low, it offers more capital efficiency and it supports auto compounding of LP rewards.

In V3 AMMs, to reconfigure your LP position,it requires you time, gas etc to move it around, such is not efficient, imagine reconfiguring your position this week, then again next week etc, imagine the toll it will take on your time , the gas cost etc.

There are different models for Maverick AMM LP positions

Mode static : This mode functions like AMMs that existed before V3, they offer static liquidity positions irrespective of price movements. You can say they are always available LP positions.

You can build custom token launchpads on top of the Mode static module.

Mode Right : This mode puts your LP positions to use ONLY when there is a price increase not otherwise.

Mode Left : This mode puts your LP positions to use ONLY when there is a price decrease not otherwise.

Mode both : This mode puts your LP positions to use in every price range. While LP stakers liquidity in Mode Left are exempted from the general liquidity in price drops, Mode Both users quickly fill in the gap,earn the fees, same happens when price increases.

The token has some functions ranging from incentive for liquidity providers, governance rights, anyone can vote on proposals or even submit a proposal.

There are a number of people that can use Maverick ranging from treasuries, traders and liquidity providers.

Liquidity providers : The automatic liquidity provisioning and distribution ensures that users have high capital efficiency, earn more fees and save time and gas with LP redistribution since its automatic.

**Traders : High price slippages are gone, they will get better rates for their money and pay less fees when trading

Maverick has a solid team of blockchain builders with people onboard having experience working with giants like Abra, TrueFI, Bittorent etc.

The exchange is also backed by some of the best VCs in the space, Pantera capital, Jump crypto etc.

Website | Maverick AMM | Twitter | Discord