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Earn More With OTokens: How To Provide Liquidity on Maverick

September 20, 2023

Maverick Protocol is a novel DeFi ecosystem designed to facilitate deep liquidity, offering users a range of tools to LP more efficiently. 

The platform’s unique Dynamic Distribution AMM arm LPs with the ability to specify ranges for liquidity provision as well as how this liquidity is distributed.

Follow the instructions below to harness Maverick’s toolset and provide liquidity to both OETH and OUSD.

1. Fund Your Web3 Wallet

Maverick boasts two Origin DeFi pools: OETH-ETH and OUSD-USDT. In order to provide liquidity to a pool, you’ll need at least one of a pair’s tokens.

Deposit the necessary funds to a Web3 wallet such as Metamask, and head over to the Pools page.

Select “Connect Wallet” in the top right corner in order to get going.

2. Select a Pool

Search for either OETH or OUSD to bring up the pool of your choice. Once you’ve chosen a pair, the site will display initial details.

The fee rate displays the trading fees paid by users conducting swaps via the pool.

Additionally, the width specifies the price range for liquidity distribution.

Select “Next” in order to proceed.

3. Select Mode

Maverick offers four modes for distributing your supplied liquidity. Users can also choose to define their own custom liquidity distribution. These modes offer far more flexibility than traditional LP, where providers suffer Impermanent Loss (IL) if price is volatile.

Each of Maverick’s native modes are suited for varying liquidity strategies that bet on price movements to earn rewards.

Let’s take a look at how these work on the OETH-ETH pool.

Mode Right assumes that the price of ETH will increase relative to OETH. In this case, the pool becomes imbalanced as traders buy more ETH. Using this mode allows you to supply OETH to rebalance the pool, thus earning trading fees.

Mode Left essentially offers the same strategy, but in reverse:

  • This mode assumes that OETH’s price will increase relative to ETH
  • You can supply ETH to the pool to earn trading fees from the resulting imbalance

Mode Both moves your position according to price movement in both directions:

  • Supply both OETH and ETH to the pool.
  • Should ETH’s price increase, your OETH is used to balance the pool (Mode Right)
  • Should the trend reverse, your ETH is used to balance the pool (Mode Left)

This strategy is designed to maximize trading fee rewards by keeping your position as close as possible to current prices. However, it’s important to note that this mode also carries increased risk of Impermanent Loss, as well as the risk of Permanent Loss.

Mode Static works like traditional Range AMMs, in that your liquidity position will not follow price in either direction. 

  • Supply both OETH and ETH to the pool
  • Choose your distribution range according to Maverick’s Mode Static parameters

Once you’ve selected your desired mode, click “Next” to proceed.

4. Confirm Your Position

The next page displays required assets depending on your chosen Mode. 

Input your desired amount, hit “Confirm”, and follow the prompts to provide liquidity.

Done! Your liquidity has now been added, earning you trading fees from swaps on the pool while also supporting the pegs for OETH and/or OUSD.

Origin DeFi’s ecosystem is growing rapidly, empowering you to put your OTokens to work through powerful integrations like Maverick. Explore the cutting-edge yield products on offer to harness some of DeFi’s most innovative yield mechanics.

Stack ETH faster with OETH: app.oeth.com

Stack USD faster with OUSD: app.ousd.com

Yasthiel Devraj
Yasthiel Devraj
Originally released by Origin Protocol
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