Maya Protocol One-Stop-Shop
  • Introduction
    • 🍫What is Maya Protocol?
      • Getting Started
      • Roles
        • Liquidity Providers
        • Swappers
        • Arbitrageurs
        • Node Operators
      • Maya Protocol Native Assets
    • 🌐Maya Ecosystem
      • User interfaces & Wallets
      • Tools
    • 🍫How to buy CACAO?
    • 🛣️Roadmap 2025
  • Deep Dive
    • 🚶‍♂️Step-by-Step Guides
      • Set up a MAYAChain wallet
        • Using El Dorito Club
        • Using THORWallet web APP
        • Using THORWallet Mobile APP
        • Through MAYANode cli
        • By importing Ledger hard wallet into Ctrl Wallet
      • Custom Memos
        • Swap
        • Add Liquidity
        • Withdraw Liquidity
    • 🛠️How It Works
      • Technology
      • Incentive Curve
      • Fees
      • Governance
      • Constants and Mimir
      • Security
      • Dynamic Inflation
      • Liquidity Nodes
      • Impermanent Loss Protection (ILP)
      • ELI5
        • What is Threshold Signature Scheme (TSS)?
    • 💵DeFi Products
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    • 🔐Audits
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    • ❓FAQs
  • Blockchain Explorer
    • 🔎MayaScan
      • 🪙MRC-20 Tokens
      • 🖼️M-NFTS
  • Airdrop
    • 🪂$MAYA Airdrops Guide
  • Media
    • 📽️Aaluxx Interviews
    • 🐦Twitter Spaces
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  • Contribute
    • 😎Ambassador Program
    • 🎨Content Creators Guide
  • Node Docs
    • 🖥️MAYANodes
      • MAYANode Overview
      • Cluster Launcher
        • Setup - Linode
        • Setup - Azure
        • Setup - Hetzner Bare Metal
        • Setup - Google Cloud
        • Setup - HCloud
        • Setup - Digital Ocean
        • Setup - AWS
      • Deploying
      • Joining
      • Managing
      • Pooled MAYANodes
      • Alerting
      • Leaving
      • 🛑Emergency Procedures
      • ✔️ CHECKLIST
      • Multi-node Deployment
      • Fullnode Installation Guide
    • Bonding & Unbonding Guide
    • Bare Metal Node Guides
  • MAYACHAIN DEV DOCS
    • Introduction
      • MAYAName Guide
      • Swapping Guide
        • Quickstart Guide
        • Fees and Wait Times
        • Streaming Swaps
      • Add MAYAChain to your Wallet
    • Examples
      • Tutorials
      • Typescript (XChainJS) WIP
        • Query Package
        • AMM Package
        • Client Packages
        • Packages Breakdown
        • Coding Guide
      • SwapKit SDK
    • Concepts
      • Connecting to MAYAChain
      • Querying MAYAChain
      • Transaction Memos
      • Asset Notation
      • Memo Length Reduction
      • Network Halts
      • Fees
      • Delays
      • Sending Transactions
      • Math
    • Aggregators
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      • EVM Implementation
    • CLI
      • Multisig
      • Offline Ledger Support
    • Protocol Development
      • Adding New Chains
      • Chain Clients
        • UTXO
        • EVM Chains
        • Cosmos Chains
      • ERC-20 Tokens
      • THORChain Version Updates I
      • THORChain Version Updates II
  • White Paper
    • 📖Maya Whitepaper 2.0
      • Introduction
      • 🍫Fair Launch
        • Philosophical perspective FL
        • Economic overview FL
        • Technical overview FL
      • 🪙$MAYA token
        • Philosophical perspective MT
        • Economic overview MT
        • Technical overview MT
      • 🌊Liquidity Nodes
        • Philosophical perspective LN
        • Economic overview LN
        • Technical overview LN
      • 🔒Security Nodes
        • Philosophical perspective SN
        • Economic overview SN
        • Technical overview SN
      • 🔴Aztec Chain & $AZTEC token
        • Philosophical perspective AC
        • Economic overview AC
        • Technical overview AC
      • ⚖️Stable Pools & Route Optimization
        • Philosophical perspective RO
        • Economic overview RO
        • Technical overview RO
      • 👣Roadmap. Maya 3.0
        • Philosophical perspective 3.0
        • Economic overview 3.0
        • Technical overview 3.0
  • Website
  • GitLab
  • Archive
    • Liquidity Auction
    • THORChads Airdrop
    • Add ETH, USDC, or USDT through THORWallet using Metamask + Ledger
    • $MAYA Airdrop for Maya Mask Holders
    • Maya Integration Guide
    • Roadmap 2023
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  1. White Paper
  2. Maya Whitepaper 2.0
  3. Liquidity Nodes

Philosophical perspective LN

There are several economic and tokenomic implications when Node operators become Liquidity Providers simultaneously:

The efficiency of the capital employed (i.e. bonded) to obtain a place in the nodes’ list is enhanced considerably when compared to the Pure Bond Model —where the native token is being used solely as an economic guarantee and is not generating any type of yield on its own.

Not all assets will be bondable, either. Only relatively lower volatile external assets such as stablecoins, BTC, or ETH will be; other Bond Pools could be added with a 67% nodes’ consensus. For security reasons, it is suggested that no more than 2 assets per chain are bondable (i.e., BUSD and BNB on Binance Chain, but not any other BEP2 coins).

This innovative alternative to the traditional bonding model simply follows the economic principles of efficient use of capital and resources. Any investor that can generate better risk-adjusted capital returns will tend to do so, and so we want to offer our operators this efficient and interesting model.

We should also mention here that whereas the traditional economic design and bonding requirements result in a theoretical deterministic value for $RUNE’s market cap of 3X its Total Value Locked (TVL), in Maya, $CACAO’s deterministic price will be 1X TVL. This might look lower at first glance but is actually the reflection of the higher capital efficiency within our protocol and the tighter relationship of $CACAO price to liquidity and fee generation.

Finally, we designed a model that creates a liquidity flywheel effect while permitting similar security parameters to the legacy pendulum and brings other advantages that we can test —audits and Maya Stagenet first, of course— for THORChain to implement if we all find them practical and successful.

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Last updated 2 years ago

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