The Edge Podcast - Maverick v2: The Liquidity Operating System

In this episode of The Edge Podcast which took place on May 29, 2024, DeFi Dad, Nomatic, and Bob discuss the upcoming launch of Maverick v2’s, AI-DEX, turnkey solutions, veToken factory, and more. Read our notes below to learn more.

Background

DeFi Dad (Host) – Host of Edge Podcast
Nomatic (Host) – Co-Host of Edge Podcast
Bob Baxley (Guest) – Core Contributor to Maverick Protocol
Maverick Protocol – an AMM optimizing capital efficiency

Maverick v1 overview

Bob says that Maverick Protocol evolved from being an AMM contract in v1 to a robust liquidity operating system in v2. The shift signifies a move towards offering powerful turnkey solutions for creating tokens and refining controls within AMM pools.
He adds that the AMM smart contract in Maverick v1 naturally performs liquidity movement based on specific price conditions that can be configured by LPs.
Bob says that Maverick v1 aims to maximize capital efficiency, enhancing volume relative to the amount of liquidity in a pool, which is crucial for LPs as it directly correlates with fees.

Lowest gas fees among CLMMs

Bob says that Maverick v2 promises the lowest gas fees among concentrated AMMs, offering benefits such as reduced costs for swappers and increased trade flow for LPs.
He adds that lower gas fees are advantageous for both swappers (lower costs) and LPs (increased trade flow), especially crucial on mainnet where transaction expenses are high.
Bob says that swappers tend to seek decks with lower transaction fees due to cost considerations, affecting their choice of platforms based on fee structures.

Programmable pool use cases and KYC Pools

Bob says that pool swapping allows interaction with other DEXs and pools to assess depth and prices. Information gathered from other pools aids in setting swap fees for incoming swaps.
He adds that the use cases of liquidation cases are beneficial for facilitating leveraged LPing. The introduction of a program layer can streamline the liquidation process effectively.
Bob says that limited options exist for swapping KYC’ed assets or RWA assets, prompting exploration of decentralized alternatives. Growing community engagement in KYC processes could lead to increased adoption of decentralized platforms like DEXes.
He adds that Maverick protocol focuses on providing smart contracts for building KYC real-time books by external parties. Various protocols already offer programmable pools integrated with specific KYC mechanisms within Maverick.

No fees for turnkey solutions

Bob says that the protocol includes a mechanism to define a fee that can be redistributed based on trade fees, subject to community governance decisions.
He adds that currently, the fee is set at zero but remains open to future adjustments through governance processes.

Building for AI agent users

Bob says that they are customizing liquidity movement through sophisticated knobs and parameters.
He adds that implementing AI models trained on past data to automate liquidity adjustments based on price stimuli. He anticipates a shift towards more advanced algorithms and liquidity management techniques in DeFi.
Bob believes in a future where AI agents replace human users in interacting with protocols. He highlights the accessibility and decentralization of DeFi, enabling individuals to engage with sophisticated trading mechanisms.
He discusses the complexity of off-chain calculations driving intent-based trading strategies across DEXs. He emphasizes the role of onchain smart contracts in enhancing liquidity providers’ ability to optimize capital utilization.
Bob enables bot-enabled applications and AI agent interactions for improved user interfaces. He streamlines the user onboarding experience by leveraging programmable infrastructure for seamless interaction with DeFi protocols.
He adds that arbitrage competition among bots leads to optimal pricing outcomes for users in decentralized markets.

Any token veFactory

Bob says that the Maverick v2 model involves launching tokens with LP liquidity pools to ensure user trust in the token’s builders.
He adds that mechanisms are needed to encourage users to stay engaged with the platform. GMX and other models provide interesting approaches to this challenge.
Bob says that Maverick v2 introduces its own model focused on user retention. The factory concept allows for reusable models across different protocols. Flywheel effects attract sticky users who stake tokens for incentives like protocol fees or other rewards.
Bob says that Maverick v2 enables permissionless deployment of v tokens on any token without ownership or centralized authority. Users can stake tokens, receive rewards, and incentivize pools using the base token. Smart contracts in Maverick v2 facilitate easy deployment of vetokens for any protocol.

Maverick veFlywheel

Bob says that the classic ve model involves emitting tokens to ve holders for governance purposes. In Maverick V2, Ve holders can vote on pools, determining emissions to LPs based on voting weight.
He adds that Maverick introduces a mechanism where rewards can be sent to ve holders in any token desired. Unlike traditional models, Maverick’s incentives are driven by matching mechanisms with boosted positions from new protocol tokens. Maverick emphasizes bringing continuous incentives to the protocol rather than relying solely on early ve allocations for emissions.
Bob says that Maverick v2 functions as an operating system within DeFi, continually enhancing DEXs by adding features akin to order books while remaining on-chain. The infrastructure built around DEXs allows protocols to manage liquidity effectively, a crucial aspect as new chains emerge in the ecosystem.
He adds that Maverick aims to support new protocols launching on various chains, providing essential on-chain mechanisms for their operations.
Bob says that the anticipated launch timeframe for Maverick v2 is set in June.

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Show Information

Medium: YouTube (Video)
Show: The Edge Podcast
Show Title: Maverick V2: The Liquidity Operating System and AI-DEX
Show Date: May 29, 2024