Maki Finance protocol acquires liquidity by offering Maki LP nodes at a fixed MAKI valuation. Thereby, Maki LP node owners receive MAKI incentives based off of fees generated by their node’s liquidity pool pair.

DPDL solves two major liquidity providing issues: Impermanent Loss (IL) and major changes in the underlying quantity of assets acting as Automated Market Markers (AMMs). The latter often results in rate inconsistencies and a disincentive for both liquidity providers and users that initiate swaps. DPDL also enhances decentralization and prevents arbitragers from commiting malicious Automated Market Making activities.

Essentially, users lock up Maki LP tokens, get rid of IL and earn MAKI incentives depending on the node pool's multiplier rate. The node pool multiplier rate is the amount of MAKI incentives issued in addition to pool generated fees. The safer the node pool, the lower the node pool multiplier and you’ve guessed it: Eventually, node pool multipliers go to zero and MAKI inflation is reallocated elsewhere.

When it comes to native token emissions, the more volume a liquidity pool captures, the more native tokens are issued.

Lastly, please acknowledge that Maki Finance doesn’t magically solve the IL issue. A Maki LP node owner is exposed to MAKI token’s volatility at all time and if other users mint the same Maki LP node as him, his rewards get diluted (though more liquidity attracts more volume and fees).

If all of this excites you as much as it excites us, feel free to join our community:

https://makifinance.xyz/