- The investment round featured several VC firms that will have a significant role in the network's planned mainnet launch
- The funds obtained will be used to advance the proprietary Automated Liquidity Placement algorithm and strengthen Maverick's position in the DeFi derivatives space
Decentralised derivatives protocol Maverick on Tuesday announced it had successfully completed an external funding round netting $8 million.
The fundraising was led by California-based crypto-focused fund Pantera with participation from other names, including Circle Ventures, Coral Ventures, Altonomy, Tron Foundation, Gemini Frontier Fund, Jump Crypto, LedgerPrime and Spartan Group.
Maverick intends to use the funds to release its Automated Liquidity Placement model and open asset-listing function to the larger market. In line with the company's mission, a fraction of the funds will also be allocated to initiatives to transform the DeFi derivatives.
Maverick is suited to meet the demand in the DeFi derivatives space
Speaking about the investment in Maverick, Pantera CIO Joey Krug noted that Maverick was in a good position to satisfy the market's need for derivates in the DeFi niche.
"DeFi needs someone to answer the demand for derivatives built on the mid-cap and long-tail assets that are underserved by existing exchanges. 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 operation model eliminates the existing challenges traders face when dealing with high or mid-cap tokens on perpetual markets. These markets don't support the quick listing of new assets since the process of creating a sustainable market requires a lot of effort.
The Gaussian Automated Liquidity Placement allows for the spinning up of markets that present the same experience using lesser resources. The placement algorithm comes with two major advantages.
It allows traders to use as collateral any ERC-20 token, which gives users the ability to trade assets without being limited to high market cap coins. It also does away with high slippage and improves liquidity positioning.
"With Maverick, we are here to change that paradigm by leveraging ALP. Markets can now be created by the community with way less capital, but still offer a great experience to traders," Maverick's co-founder Alvin Xu stated said.