AMA with Maverick Protocol
On the 26th of November, 2021 at 14:00 UTC, Decentralized Club had the honor of hosting aintheair, Community Lead of Maverick Protocol for an Ask-Me-Anything session on their Telegram page with a community of over 70,000 people. It was hosted by DC Admin, May.
The session was divided into four segments. Introductions were made in Segment 1, questions from the Twitter and website community were answered in Segment 2 and 3 respectively, and live questions from the community members in attendance were answered in Segment 4.
If you missed this event and would like to know what Maverick Protocol is all about, you can find a recap of the interview here. Information here should be researched and should not be taken as investment or financial advice. Also note that slight edits have been made for clarity, and links in this recap lead to images, documents, or other media.
Segment 1 - Introduction
Hello, 大家好, नमस्ते, Selamat!
My name is May and I'll be hosting the AMA with Maverick Protocol.
Today, we have with us a guest from the Maverick Team.
Thank you, May, excited to be here.
You're welcome to the Decentralized Club. Glad to have you stop by to talk about Maverick Protocol.
How is your day going?
Great and hope everyone’s having a good day, happy to share more info about Maverick Protocol
Right before we begin the session properly, could you please share more about yourself and your job on the Maverick Team?
I’m a veteran product lead who’s been in crypto since 2018. Led many core crypto products such as swaps, crypto lending, interest-bearing, crypto debit card, Bitcoin on-ramping / off-ramping, and single-sided AMM.
I’m the community lead of Maverick and I help on all perspectives on Maverick except for engineering so far.
That's great! I'm sure the team's glad to have you in their corner.
Let's get into the session now with the following questions about Maverick Protocol.
Yes let’s go
First off, can you tell us about Maverick Protocol and the inspiration that kickstarted it?
Maverick is a decentralized permissionless protocol for trading and staking any asset pair, powered by the MAV token. Maverick establishes rules that allow anyone to launch a perpetual market on any blockchain-tracked asset pair, with up to 10x buying power for traders and without many of the risks or costs associated with centralized intermediaries.
Maverick’s mission is to build a protocol that implements safe, capital-efficient, and disintermediated market conventions for the masses.
What innovative solution is Maverick Protocol bringing to topple its competitors with similar offerings in trading and DeFi?
1. A truly permissionless DEX, which allows users to list and trade risk associated with any asset or asset-pairing, has the opportunity to capture a broad audience of traders and token holders who are not served by existing DEXs.
2. Automatic Liquidity Replacement vAMM: Newer AMM’s try to improve capital efficiency by requiring LPs to actively manage their capital, if the capital is not managed correctly it results in a high impermanent loss for LPs and high slippage for traders. Our unique vAMM allows LPs to passively stake while ensuring that their capital is effectively partitioned. The vAMM automatically shifts and concentrates the liquidity around the market price resulting in low slippage for traders and more fees for LPs.
3. Intuitive user experience: Traditional derivative exchanges are built for power users and experienced traders. With Maverick, we simplified the trading experience allowing any trader to open margin positions. Now users are not overwhelmed by the bells and whistles prevalent in traditional exchanges.
4. Maverick is 100% on-chain dex, peer-to-pool model, compared to some of the partially off-chain, order book model dexes.
Distinct features! Well-done.
Could you talk about $MAV and its utilities?
Governance: Maverick is designed for every MAV token holder to have a voice. MAV tokens can be used to suggest protocol improvements or vote on proposals such as approved assets, partnerships, and the direction of the protocol.
Staking: Portions of all transaction fees and the funding rate will be paid out to staked-token holders. Maverick supports many different types of token pairs. Staked-token holders will be able to claim rewards across all of the quote tokens trading via Maverick, offering more exposure to many different tokens.
To join our community and get ready to participate in community governance, join us on:
📰Official TG News Channel: https://t.me/maverickprotocol
💻 Discord: https://discord.com/invite/4wBBa7rQSj
What are the most prominent features of Maverick Protocol?
Traders on Maverick may take out a leveraged position on any assets, and enjoy:
- Low Fees
Transaction fees are as low as 0.1%. Maverick is built on a layer 2 solution, allowing transactions to incur lower gas fees than the most popular DEXs.
- Low Slippage
Maverick’s automated liquidity placement curve promotes liquidity concentration around the market value of the asset. Liquidity depth is increased, and traders can enter into positions with much lower slippage.
- 10x Buying Power
Maverick enables traders to open long or short positions with up to 10x buying power on any listed asset without the risks associated with a centralized intermediary.
- Fast Execution
Maverick’s layer 2 solution directs transactions to execute more quickly than most centralized or decentralized solutions.
- Risk Mitigation
Traders and other participants in the crypto-asset ecology may utilize Maverick to execute risk-mitigation strategies, potentially assisting to provide predictable stability in place of high volatility normally associated with the industry.
Liquidity Providers (LPs):
By adding assets to Maverick trading pools, LPs benefit from:
- More Farming Opportunities
Maverick enables markets to be deployed using any ERC20 token as collateral. Token holders are presented with new yield farming opportunities for the tokens they already hold.
- Higher Capital Efficiency
Traditional AMMs leave most of an LP’s capital stagnant. Maverick’s automated liquidity placement model reallocates an LP’s capital around the market value to enable LPs’ collection of more fees.
- Reduced Impermanent Loss
In markets with lower activity, the impermanent loss can be extremely high. Maverick’s constant shifting of LP’s liquidity based on the market price lowers the risk of LPs incurring impermanent losses.
So many great incentives!
Do you have any staking or yield farming incentives?
Yes, you can stake / yield farm any erc20 asset, very much like sushi but for derivatives.
Our Litepaper is live! Read more on our features: https://bit.ly/3E0uGsL
What major news should we still look forward to from Maverick Protocol by the end of the year?
1. Testnet launch: testnet.mav.xyz; Update on our rounds of investments from some of the most prestigious VCs
2. DAO launch
3. Token generation event in several leading IDO platforms
4. Mainnet launch on Polygon
Earnestly anticipating these milestones!
Let's now take some community questions from Twitter.
Segment 2 - Twitter Questions
Personally, security has been a concern for me when I discover a project as promising as this. Tell me, what steps have you taken or are you taking to ensure your security and better protect the users?
Twitter Username: @AnthonyUdem
- Ongoing security audit with blue-chip security auditing firms
- Our team comes from a cybersecurity background, including battle-tested smart contract engineers
- High code coverage
How exactly in layman's terms does Maverick enable DeFi users to deploy, stake, and trade any asset without the need for counterparties?
Twitter Username: @idmann_ub
Liquidity providers (LPs) deploy a pool for any asset pair they want via Maverick, essentially opening a perpetual market for that pair. Each pair consists of a base (the asset being bought) and a quote (the asset being exchanged for it). The base asset can be any asset with an available price feed. The quote asset can be any ERC20 token on the Polygon network.
With an asset pair deployed, LPs add liquidity by providing a given amount of a quoted asset, which is then converted in the vAMM to an equivalent amount of the virtual base asset, based on the then-current mark price.
For example, take the ETH/USDT asset pair. An LP can provide liquidity to the pool by investing USDT, which will be converted in the vAMM to virtual ETH. Imagine ETH is trading at 4000 USDT when the LP stakes the pool. The LP stakes the pool with 10,000 USDT (the quote asset). This is converted by the vAMM to 2.5 virtual ETH, which is made available to traders as liquidity in the pool.
As long as they maintain their stake, the LP will earn fees proportionate to the size of that stake in the pool. The LP’s collateral is constantly shifted by Maverick’s ALP vAMM based on the spot price to ensure liquidity and keep them earning fees.
With the token pair staked, traders are now able to open positions with up to 10x buying power, with the vAMM acting as a counterparty (rather than the LPs themselves entering transactions with the traders). Traders invest quantities of the quote asset in long or short positions on the virtual base asset.
For example, a trader on Maverick may wish to open a long position on the asset pair of ETH/USDT. The mark price of ETH according to the vAMM is 4000 USDT. The trader deposits 100 USDT and uses this to open a 5x position worth 500 USDT, essentially purchasing 0.125 ETH as a virtual asset. Later, the mark price moves to 4500 USDT, and the trader chooses to close their position. Their virtual ETH is returned to the asset pool, and they receive 62.5 USDT in profit (less fees). The trader has been able to exploit changes in the price of ETH without having to own the real asset, and Maverick’s buying power option allowed them to enjoy an increased profit at a lower risk to their own holdings. As the traders are trading against an automated vAMM facilitated by a transparent blockchain, there is less counterparty risk associated with centralized counterparties or intermediaries like lack of transparency, insolvency, or questionable operation.
A minute for the community to read.
Maverick is a fully scalable platform to support all asset classes. But I would like to know, how do you control the level of assets that do not comply with verified security? How do you manage assets issued by all users?
Twitter Username: @VickJ09
1. Maverick is a tool/platform for people to stake and trade. Technically we don’t interfere with the user's strategies. However,
2. At the very beginning, on the smart contract level, we block security asset deployments. This will be handled by DAO later on.
Let's now take three questions from our website family.
Segment 3 - Website Questions
Are there any specific areas you hope to cover with your innovation, are there plans to touch other places of the globe?
Telegram Username: @Tiledesom
Maverick is globally available to most of the users, we welcome ambassadors to reach out and work together in helping Maverick to reach different countries/ regions
Anyone who's interested to become a Maverick Ambassador, please fill out the form: https://bit.ly/3p9d5J8
DC Community, check this out!
I'd like to know how the community controls the assets that are available on Maverick. How can the community and users of Maverick Protocol deploy their choice assets if there is an available price feed for it? What other good advantages does the community have in this project?
Telegram Username: @Zeybertn
Anyone can deploy an asset pool with a single-sided asset, for example, BTC/USDT you can just use USDT to deploy a pool. The advantage is gaining yield with low gas fees.
Oh, that's simple!
For security, how secure are our assets and funds in Maverick Protocol? Are you reliable for some losses of users if ever there will be unexpected situations that will happen in your platform like hacking and fraud? How are you ready for this kind of matter that will happen in Maverick?
Telegram Username: @jobel4
There’s an isolated insurance fund in each pool that is being generated by part of the trading fees and liquidated trader’s collaterals. In case of unlikely events, we will have 2-3 security audits by reputable firms before releasing the main net.
It's now time for the live segment!
In this 4th segment, I will open the group for some seconds for the live community to shoot you some pressing questions.
Please pick four original questions to answer.
Try to ignore generic, vague, and copy-paste questions 😊
Let’s do this
As a measure to deter bots and reward hunters, could you please pick four random emojis that will be included in the questions so you can tell original questions apart?
---Chat was then opened for the live community to send in their questions---
Segment 4 - Live Questions
Thank you dear community for your questions.
Guest, you can pick four questions now.
Kindly prioritize the questions with the 🤟👏🔥😍 emojis.
🤟👏🔥😍 Can MAV be used to suggest Protocol improvements or vote on proposals?
Yes! For more information and how to use Maverick testnet: https://bit.ly/3E0uGsL
Interested in knowing where to find resource materials about $MAV and the details of the purchase as well.
Project's solid IMO.
MAV is not available yet and please be careful of imposters. MAV will be issued across popular IDO platforms around the end of the year.
However, you can join: a Twitter contest to win $200 USDT https://twitter.com/mavprotocol/status/1464114178130653197?s=20
Two more questions to go! 🎉
How do you plan to make the trading experience efficient, transparent, and reliable? 🤟👏🔥😍
Check out our testnet: testnet.mav.xyz since we are 100% on-chain trading, everything is transparent on the code level
Do you have any
1. Telegram Group
2. YouTube channel
3. Tiktok Channel
For this project? From where we can learn something? Please share with us a link.
💻 Discord: https://discord.com/invite/4wBBa7rQSj
🌐 Official Website:https://www.mav.xyz/
🔉 Official TG News Channel: https://t.me/maverickprotocol
Could you please answer one more? 😁
Hello, I want to know if to deploy more assets in Maverick I must comply with the restrictive requirements that traditional participation models usually have? If so, what are the requirements that I should meet to move freely on your platform? Can you explain how your participation model works?
Thanks to the deployment experience on Maverick being similar to Uniswap, which is truly permissionless. You can participate as long as you are a token holder. Deploying a pool needs a minimum amount which makes the pool more liquid.
Aaaaaaand it's a wrap! 🎉
It was great to have you, dear guest
Maverick Protocol is indeed a solid project and we can't wait for it to go mainstream!
Our warm regards to the rest of the Maverick Team working round the clock to make this project the best!
Thank you all very much, be in touch!
Dear community, please keep tabs on Maverick Protocol via the links shared in the chat.
Until next time, do have a great day.
The AMA with Maverick Protocol is now over.