Understanding Boosted Positions
This page explains the basic concept of Boosted Positions.
Last updated
This page explains the basic concept of Boosted Positions.
Last updated
In Maverick V2, Boosted Positions can now have multiple reward contracts. Read the section below to learn more.
When a user deposits liquidity into a Maverick pool, they select from several options to open a specific position in that pool. Each position is differentiated by a number of key variables: token pair, fee tier, bin width, liquidity mode, and liquidity distribution. For example, one position might consist of a single Mode Right bin of USDC in the USDC/USDT 1% fee 1% width pool, while another could consist of twenty-one Mode Static bins including both USDC and USDT in the same pool.
Positions offer users a high degree of control and flexibility when it comes to providing liquidity. As Boosted Positions, they also offer a similar degree of precise control when it comes to directing liquidity incentives.
Instead of adding liquidity and creating a regular position, a user can create a Boosted Position (always denoted with a lightning bolt in the UI). A Boosted Position works exactly like any other position, with two important differences:
other users can add liquidity to a Boosted Position, effectively buying a share in that position
a Boosted Position can be incentivized with additional token rewards, which are shared among LPs who add liquidity to that Boosted Position
That is to say, users can add more tokens to the Maverick smart contract which will be distributed to LPs who own liquidity in a particular Boosted Position. These incentives function like bribes to other users to add more liquidity to that Boosted Position.
With Maverick’s Boosted Positions, users can thus use incentive rewards to attract liquidity in very precise ways.
For example, a new token project looking to bootstrap liquidity for their token (let’s call it XYZ) doesn’t need LPs to bring more XYZ to Maverick–their treasure already has plenty of it. What they need from users is a quote asset (e.g., ETH) that can be swapped against their XYZ. So they could create a Boosted Position consisting only of ETH in a XYZ/ETH pool and then add incentives to the Boosted Position. This would encourage new LPs to add only ETH to the pool, effectively allowing project XYZ to rent only the liquidity they need for their pool.
Boosted Positions are listed on their own page in the UI, under Add Liquidity. For more information on how to create and incentivize Boosted Positions, please see the directions elsewhere in this section.
When an LP provides liquidity to a Boosted Position, they receive ERC-20 LP tokens representing their share of the total liquidity in the Boosted Position. To qualify for incentives from the Boosted Position, they must stake these LP tokens into the Boosted Position's reward contract. Incentives are sent to that reward contract, and then distributed to stakers in the contract pro rata.
In Maverick V1, each Boosted Position had a single reward contract. In Maverick V2, it is possible for a Boosted Position to have multiple reward contracts. This enables users to create an alternate reward stream for the same liquidity configuration without having to duplicate the Boosted Position itself.
In general, it is most likely that a Boosted Position will only have one reward contract. In the event that a second reward contract is deployed, it will appear in the UI as a separate Boosted Position with "-R#" appended to its number, where # is the number of the new reward contract. In the screenshot above, a second reward contract has been deployed for GRAI-USDC #3, and so a second Boosted Position appears as GRAI-USDC #3-R2. None of the other Boosted Positions in this list currently have a second reward contract.
LP tokens can only be staked in one reward contract at a time. If a Boosted Position has more than one reward contract, an LP will have to choose between them. If an LP wants to change reward contract (e.g., if they decide the rewards from another reward contract are more attractive), they will have to unstake their LP tokens from one reward contract and stake them in the other contract.
