Post
Topic
Board Altcoin Discussion
Topic OP
Maya Protocol Liquidity Nodes and Capital Efficiency.
by
dungEater69
on 15/07/2022, 17:55:16 UTC

Maya Protocol has a really interesting model for LPs and liquidity nodes, modifying the usual pure bond model and creating a more capital efficient platform without comprimising security.

This is achieved by bonding LP units via nodes, so nodes end up becoming liquidity providers.

Maya might be a THORchain fork, but it adjusts the approach used by it regarding the Pure Bond Model security policies, where:

- More than 67% of capital has to be bonded by the Maya nodes.
- This balance must be found by rational market forces such as supply and demand.
- There must be a high node count to incentivize decentralization.

nodes still need to buy and bond a big amount of $CACAO (Maya’s settlement token) for the exact same security reasons but store them in a totally
different place. Whereas in the the other model bonded native tokens are
locked up unproductively inside a specific address, bonded $CACAO in
Maya is deposited inside Liquidity Pools, paired with other native
assets and generating yield.

Also Maya node operators can supercharge their invested capital efficiency by earning both LP rewards as well as their usual Validator rewards.

This is really interesting because they achieved a model that creates a sort of liquidity flywheel effect while still permitting similar security features and parameters to the legacy pendulum.