Pantera Capital recently closed a funding round to fund Maverick (a decentralized protocol for crypto derivatives). Altonomy Ventures and Coral Ventures were also part of this round.
The funding will be used to launch Maverick’s mainnet (expected in mid-2022) and scale the underlying protocol. Maverick is different from existing DEXs, which use the Automated Market Maker’s (AMM), infrastructure. Instead of using an ALM (automated liquidity placement model), Maverick utilizes a Gaussian Automated Liquidity Placement Model. A platform that allows for open asset listing, Maverick lets anyone launch permanent crypto trading pairs with an ERC-20 token collateral.
With the crypto derivatives market growing, Maverick’s decentralized protocol aims to introduce a seamless ecosystem where users can trade perpetual backed by mid-cap tokens. The majority of decentralized exchanges currently only offer 30 trading pairs. This leaves out more than 100 pairs which are available on the centralized exchanges.
Joey Krug is Pantera Capital’s co-CIO. He believes that the Maverick permissionless Protocol has the potential to satisfy the rising demand for DeFi-related crypto derivatives at mid-cap levels.
“Pantera believes Maverick is the protocol to accomplish this. Its innovative market structure is poised to capture a significant chunk of the market by offering low slippage to traders and low-maintenance, capital-efficient staking to LPs.”
Maverick’s ALP model is the crown jewel of this crypto derivatives trading platform; it is an innovative mechanism that automatically concentrates liquidity around the market price. The ALP model is more efficient than the AMM architecture and allows for less slippage by crypto derivatives traders. Liquidity providers have the ability to automatically manage collateral.
Commenting on the milestone, Maverick’s Co-Founder and CEO Alvin Xu said that the true value of upcoming DeFi platforms is giving users access to the ‘latest and greatest’ crypto assets. The long-term crypto market veteran expressed optimism in Maverick’s cutting edge within the burgeoning DeFi market,
“Being a veteran in the crypto industry, you get to see many trends come and go. One thing that still holds true is a trading platform’s value comes from giving people access to the latest and greatest crypto assets,”
Maverick, in addition to a distributed perpetual trading environment, will also feature staking pool, which rewards liquidity providers with incentives. LPs can choose to stake on existing pools or deploy their own from the platform’s stake screen. DeFi already has partnered with many stakeholders to increase its market share in the crypto perpetual market.
“Perpetual markets still lack the ability to quickly list new assets due to the intensive work required to spin up a sustainable market. Maverick is changing that paradigm through ALP (Automated Liquidity Plament). Markets can now be created by the community with way less capital, but still offer a great experience to traders.” added Xu.
