Let’s take a look at a set of data first. Figure 1: From @mati’s board on dune, we can see that TVL has shown a phased growth. Figure 2: From the data on defillama, TVL ranks 8th on the Ethereum chain; Figure 3: Ranked 2nd on Zksync.
Mav is a rare innovation in the current t-36/> track. It can flexibly set up multiple LP placement modes and dynamically merge liquidity pools according to prices to increase the depth of the pool and improve the efficiency of capital utilization. Although t-38/> provides a very detailed description (https://docs.mav.xyz), many friends may still have doubts about the LP placement strategy.
The four LP strategies provided by Maverick are: static mode, right mode, left mode, and bilateral mode. The static mode is easier to understand. Similar to Uniswap V3, LP is valid within a range, which is set when LP is placed. This mode is suitable for situations where the price will remain within a certain range. For example, the stablecoin pairs in Maverick and the LST pairs of ETH can adopt this mode because the price range is relatively fixed:
The right mode means that when the price of the underlying asset rises (for example, when ETH in USDC-ETH rises), the active warehouse (the warehouse where the current price is located) moves to the right. At this time, the USDC in the LP who chooses the right mode can move to the right and concentrate in the left warehouse of the current active warehouse. Because the price is volatile, the callback during the price increase may fall into the left warehouse where the LP is located again, and then rise again. At this time, in addition to the handling fee income, the LP can also obtain the band profit brought by the rise. However, when the price falls, the LP will not move, so the risk of loss is greater when it falls. This mode is suitable for situations where the underlying asset has always risen unilaterally for a long time, and the time of falling is less. For example, ETH-swETH on Maverick has a right mode, because swETH/ETH is always greater than 1. At present, because the overall market is in a state of volatility, there are relatively few pools in the right mode.
The left mode is the opposite of the right mode. When the underlying asset falls, the unilateral LP will automatically move to the right side of the current active position. When it rises, it will not move, so it may face losses when it rises. It is suitable for situations where the underlying asset always falls unilaterally for a long time, and the rise time is less. For example, wstETH-ETH on Maverick has a left mode because ETH/wstETH is always less than 1.
The bilateral mode means that the underlying asset will move right or left regardless of whether it rises or falls, which can maximize capital efficiency in the shock. However, this mode has a permanent loss risk. Although the risk can be reduced by increasing the bin range, it still needs to be carefully weighed, which is equivalent to exchanging risk for capital utilization. At present, for stablecoin pairs with relatively stable price ranges on Maverick, the both mode has a lower return than the static mode, but for USDC-ETH with a wide range, the both mode has a higher return than the static mode.
At present, the TVL contribution rate on Maverick is dominated by LST tokens, followed by stablecoins. And in terms of trading volume, wstETH's trading volume accounts for a large proportion, liquidity. Compared with Uniswap V3, dynamic LP can indeed increase the efficiency of capital utilization and thus increase returns, but LP investors face greater learning costs and the risk of misjudgment, and for relatively stable stablecoins and LST trading pairs, the dynamic mode still does not significantly increase the income growth compared to the static mode. However, the liquidity it provides is attractive to LST tokens:
In LST transactions, Maverick has performed well, and a large part of it is attracted by aggregators.
Looking at the airdropped tokens, only 3% of the addresses choose to continue staking. Since the overlap between the users who shill the tokens and the real users may not be high, the staking situation needs to be further observed. Maverick's high capital utilization rate and large liquidity do attract many users to participate, especially transactions related to LST tokens. In the zkSync era, shilling is still worth a try, and pools with boost mechanisms are also worth participating in to earn greater returns.
