Please find the most frequently asked questions in the following sections.
What can I do on MAYAChain?
You can swap/trade (buy & sell) Assets, provide Liquidity and earn yield, and/or run a Node to help secure our network in exchange for fees and yield.
The team and founders have Zero $CACAO allocation. If they do have it, they have acquired it by buying it from the market, like everyone else. 90% of $CACAO has been donated to early Liquidity Providers during the Liquidity Auction, while the remaining 10% is in the Maya Fund vault to finance pools' Impermanent Loss.
- There is no BEP20 or ERC20 CACAO in existence.
- You can only buy Native CACAO from the market.
- Only native CACAO is used in MAYAChain.
Uniswap enables decentralized crypto trading within a blockchain (mainly Ethereum), while MAYAChain offers a secure method to trade/exchange native assets across blockchains.
Does MAYAChain need Oracles?
No, it doesn't. MAYAChain's Continuous Liquidity Pool design & arbitrageurs set prices. When pools become imbalanced, arbitrage bots trade to rebalance them. CACAO binds all pools together, allowing arbitrage traders to purchase tokens at a lower price on MAYAChain & sell them for a profit. Arbitrage bots interact with the API 24/7, & anyone can run their own!
Yes, there is a fee for every withdrawal, whether it is an asymmetrical or symmetrical deposit.
TLDR: Transaction Fee = Inbound fee Network Fee = 3x fee charged by network Total = Sum of both
Overview of the process and why:
- 1.Nodes Pay 1* Standard Fee from the native pools (gas pools)
- 2.LPs get paid back 2* St Fee, they earn >1x in margin due to arbing
- 3.Reserve gets paid back 3x, it earns 1x in margin which goes to the reserve.
No. Only short tail assets with high MarketCap, good velocity and economic activity would have chances to win liquidity competition to get listed. Although DEX Aggregators connected to MAYAChain can offer this service. Check Governance for how tokens are added, and our pools for the full list of supported tokens.
No. Synths enables synthetic assets with no IL and with single asset exposure. They do not generate yield.
MAYAChain uses Tendermint which is a classical BFT algorithm. 2/3 of the validators need to agree and the network values safety. The chain has instant finality and this is needed to secure cross-chain bridges.
If each pool is comprised of two assets (e.g. BTC:ETH) then there will be a scaling problem with n*(n-1)/2 possible connections. By having CACAO on one side of each pool, $CACAO becomes a settlement bridging asset allowing swaps between any two other assets. Additionally, having $CACAO in a pool ensures that the network can become aware of the value of assets it is securing.
Simply put, Cross-chain bridges are a better solution than Atomic Swaps. Atomic Swaps involve a complex process of signing cryptographic keys between two parties that require interactivity. You also need a counter-party on all trades. Cross-chain bridges, coupled with continuous liquidity pools means you don't need a designated counter-party, and swaps can happen in less than a second. 1-way state pegs are better than 2-way asset pegs because assets don't need to be wrapped or pegged. Instead of having IOU tokens, real native assets can be used instead.
The goal is to have a fixed supply at all times, instead of constantly emitting (infinite supply like Cosmos or Ethereum) or reducing the emission down to zero (Bitcoin). Although, Maya Protocol can elect to use dynamic inflation.
Approximately every three days, the pending pool with the deepest liquidity is churned in (becomes an active pool). This is called a Pool Churn. Note: A pending pool must have a minimum 10K CACAO to be eligible for a churn.
This means there is an open decentralised liquidity competition where the community can vote with their liquidity. N.B. Caps will prevent voting with liquidity.
There is a set max of 100 active pools, and once achieved, deeper pending pools will be able to replace shallowest active pools. See Governance for more information.
Make sure you have a sufficient amount of native cacao to process transactions. Also be sure to check if the liquidity caps are full. If so, you will not be able to add liquidity at that time. If you see errors like “No UTXOs to send” or “Need to wait for more UTXO confirmation”; likely you are trying to spend UTXO assets (BTC, LTC, BCH) that you have just transferred into your wallet. Please wait for more blockchain confirmations, and try again later!
MAYAChain produces a block every 6 seconds on average. So, MAYAChain produces around 14,400 blocks per day. Sometimes blocks can be produced slightly faster or slower, so these numbers are estimations.
You do not need $CACAO to interact with MAYAChain. You can perform swaps and add/remove liquidity without directly touching $CACAO or the MAYAChain protocol. You will need to find a MAYAChain-connected wallet.
Yes, the Network Fee is collected in $CACAO. If the transaction involves an asset that is not $CACAO, the user pays the asset's Network Fee. The equivalent amount is taken from that pool's $CACAO supply and added to the Protocol Reserve.
Users can swap any assets which are on connected chains and which have been added to the network. Users can swap from any connected asset to any other connected asset. They can also swap from any connected asset to $CACAO.
MAYA manages the swaps following the rules of the state machine - which is completely autonomous. Every swap that it observes is finalized, ordered, and processed. Invalid swaps are refunded, and valid swaps are ordered transparently and resistant to front-running. Validators can not influence the order of trades and are punished if they fail to observe a valid swap.
Swaps are completed as fast as they can be confirmed, around 5-10 seconds.
The cost of a swap is made up of two parts:
- 1.Outbound Fee
- 2.Price Slippage
All swaps are charged a network fee. The network fee is dynamic – calculated by averaging recent gas prices.
Swap fees are dependent on the depth of liquidity pools, the deeper the pools (aka the more liquidity) the less the fee is. Swap fee also depends on the size of the deposit. Bigger deposits incur more swap fees.
The Keystore is an encrypted version of a user's private key, protected by a password, and presented in JSON/text format. It is a more secure alternative to the private key, as it requires a password to access.
Liquidity providers deposit their assets in liquidity pools and earn yield in return. They earn tokens in Cacao and the pool's connected asset. For example, someone deposited in the BTC/CACAO pool will receive rewards in BTC and CACAO.
Read our whitepaper for a detailed breakdown of being a Liquidity Provider on Maya.
Yes! Depositing assets on MAYAChain is permissionless and non-custodial.
Several factors will affect how much yield you receive, including your ownership % of the pool, swap volume, and size of swaps. The yield comes from fees and rewards from the protocol.
Yield is calculated for liquidity providers in every block. Yield is paid out to liquidity providers when they remove assets from the pool. Rewards are calculated according to whether or not the block contains any swap transactions. If the block contains swap transactions, the amount of fees collected per pool sets the number of rewards. If the block doesn't have trades, the amount of assets in the pool determines the rewards.
There is no minimum or maximum time or amount. Join and leave whenever you wish. There is however a required confirmation time before MAYAChain credits you with liquidity when adding or swapping to protect against Reorgs.
If you bonded your liquidity you have to wait for the Node you bonded to to churn out.
Symmetrical deposits are where users deposit an equal value of 2 assets to a pool. For example, a user deposits $500 of BTC and $500 of CACAO to the BTC/CACAO pool.
Asymmetrical deposits are where users deposit unequal values of 2 assets to a pool. For example, a user deposits $2000 BTC and $0 CACAO to the BTC/CACAO pool. In the backend, the member is given ownership of the pool that considers the slip created in the price. The liquidity provider will end up with <$1000 in BTC and <$1000 in CACAO. The deeper the pool, the closer to a total of $2000 the member will own.
No. You cannot withdraw symmetrically. You can withdraw only asymmetrically for LP you deposited asymmetrically.
Yes, because when you pool asymmetrically your asset is swapped into 50% cacao and 50% asset. When swapping you are subject to slippage and fees. There are 2 types charged on asymmetrical deposits/withdrawals:
- 1.The on-chain deposit transaction fee (inbound tx)
- 2.The liquidity fee as a function of slip
Upon withdrawal, there will also be a transaction fee (outbound tx)
No, there is only the deposit transaction fee.
If you deposit asymmetrically you can ONLY withdraw asymmetrically.
You can withdraw your symmetrical deposit both asymmetrically and symmetrically.
Yes, but the IL Protection is applied to the asymmetrical deposit after it has been converted into a symmetrical deposit (also meaning after slippage and fees). This means that the IL Protection will cover both assets. See ILP above.
Currently, yes. Our ILP guarantees that LPs will either make a profit or at least recoup their investment (in USD value) in comparison to holding them externally after a certain period (currently set to 100 days) and even that they can be partially reimbursed for any impermanent losses incurred before that time. Any potential losses in the LP deposit are subsidized in $CACAO.
ILP kicks in 50 days after providing liquidity, with a 1% compensation for any realized IL. After that, 1% more is added everyday until , on day 150, 100% of the IL realized is covered. As an example, on day 100 after adding liquidity, your ILP is 50%.
ILP kicks in 50 days after providing liquidity, with a .25% compensation for any realized IL. After that, .25% more is added everyday until , on day 450, 100% of the IL realized is covered.
The Soft Cap has been removed, so there should be no limit to the amount of liquidity entered. There is a hard cap in place to ensure the total pooled cannot exceed the total bonded, making the network unsafe however the Incentive Pendulum makes this cap near impossible to reach.
There are two main strategies; active and passive.
Passive liquidity providers should seek out pools with deep liquidity to minimize risk and maximize returns.
Active liquidity providers can maximize returns by seeking pools with shallow liquidity but high demand. This demand will cause greater slips and higher fees for liquidity providers.