Before anything else, “MAIA” is pronounced as [MA – YA].
With that out of the way, to understand what MAIA DAO is, refer to our previous article on MAIA — this pretty much covers everything and is an extensive guide to getting started with MAIA DAO.
Let’s get down to business.
UNI v3 – CLAMM
Uniswap’s version 3 AMM can be said to be leading a tight race for the most innovative integration in the post-DEFI summer markets with the introduction of a few innovative features such as the selection of preferred fee tiers, and liquidity concentration.
This is not so surprising as Uniswap has always been at the forefront of innovation in the DEFI space.
The concept of concentrated liquidity — allowing users to set specific price ranges to utilize their liquidity in “LPing” into pools unlocks a lot of possibilities and interest in the world of decentralized market making.
For one, it decreases the risk of impermanent loss, and additionally, attracts liquidity providers as it renders a unique opportunity to make calculated decisions in providing liquidity to pools. LPs will be able to earn fees at their price range; a more efficient alternative to the traditional method of earning fees after providing liquidity in equal amounts of two tokens, favorable to active liquidity providers.
UNI v3 Forks and Integrations
“The value of an idea lies in the using of it.“
Like the quote above, Utility only proves the value of an idea or product. Therefore, it’s not unprecedented to see that there is a lengthy list of protocols waiting for the 1st of April, 2023, when the UNIv3 Business source license (BSL) expires, allowing these projects to fork it for free.
However, forking a project is one thing and strategically doing so properly to put it to use with the appropriate mechanism is another.
One of the protocols for doing both and getting it right from an observatory angle is MAIA DAO.
MAIA recently announced that they’ll be adding the CLAMM to their suite of products allowing users of the native DEX to select preferred points to supply liquidity in the pools.
See announcement here
Aave moves to Metis, MAIA integrates CLAMM; Opportunity meets preparedness
Following AAVE’s recent announcement of a proposal to deploy on Metis and the reaction of the AAVE community in support of the proposal, it is without a doubt that significant liquidity is set to flow to the 5th largest Ethereum layer 2 networks.
This makes the MAIA DAO’s move to integrate UNIv3-CLAMM look more promising beyond the advantages: better user experience and attracting liquidity providers. Despite being responsible for almost a third of TVL on the Metis chain, AAVE’s move is likely to further the trend, as MAIADAO will be primed to take advantage of the volume from on-chain liquidations.
New revenue sources unlocked
Thanks to the adoption of concentrated liquidity, the MAIA DAO ecosystem is getting an additional layer of revenue. Through the built-in protocol fee, MAIA will be able to allocate 10% of the trading fees to veHERMES holders, sMAIA holders, and what’s left to the treasury, shared 3%, 3%, and 4% respectively.
Important to state that, unlike other L2s with existing DEXs adopting concentrated liquidity, MAIA DAO is leading the way in UNIV3 deployment on the Metis chain. As the uniV3 fork season heats up with deployments across L2s, it’s important to keep an eye on those who are strategically making use of the newfound liquidity in-flow like MAIA.
- This article was written by Excel “Ollie” Oliva (thequietcrypt) — Ollie is a jolly good fellow exploring the wormhole that is crypto and web3. He enjoys researching protocols and breaking down complex ideas into digestible chunks. Give the lad a follow on twitter will ya?