Maximizer is an ecosystem treasury protocol based on the MAXI token. Each MAXI token is backed by a basket of Avalanche assets in the Maximizer ecosystem treasury. The first mission of this treasury is to boost the efficiency of the no-sell-yield optimizer vaults by increasing the Total Value Locked (more TVL = better optimized yield).
The ecosystem treasury was launched with the bootstrapping mechanics popularized by Olympus. Maximizer's vaults were built first, then Olympus's co-op reserve currency strategy was used as a DeFi tool on top of it, to serve the grander vision of the protocol.
Maximizer is the first protocol to offer bonds using partner projects LP tokens as principal. Other projects using a similar bonding mechanism only allowed either native LPs (meaning LP tokens with their own token e.g. AVAX-XXX or DAI-XXX, with XXX being the project own token), or naked assets (such as AVAX, DAI etc) for bonding. This unique feature helps partners secure their own liquidity, while also growing the treasury. As Maximizer treasury grows, Avalanche projects liquidity grows as well, and the ecosystem benefits as a whole.
You can find the details of the composition of the ecosystem treasury on the dashboard, under Asset Exposure https://app.maxi.xyz/#/dashboard
There are two main strategies for market participants: staking and minting. Stakers stake their MAXI tokens in return for more MAXI tokens (and other rewards by using Maximizer’s vaults),, while minters provide LPs or naked tokens in exchange for discounted MAXI tokens after a fixed vesting period.
Staking is a passive investment strategy in MAXI. Users can simply buy MAXI from the open market, and stake it on the Maximizer app. The main benefit for stakers comes from supply growth. The protocol mints new MAXI tokens from the treasury, the majority of which are distributed to stakers every 8 hours, according to their share of the staking pool. Staking also makes you eligible for any extra rewards the protocol offers, like airdrops from partners or projects taking part in the startup boost initiative.
Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers would make a profit.
To grow its treasury, Maximizer uses a minting mechanisms through bonds, similar to the one introduced by Olympus. What this essentially means, is that users can exchange a given asset (e.g. $PTP, or MORE-AVAX JLP), for $MAXI at a discount. Now sometimes, discount might be negative, and users would actually buy $MAXI at a premium if they were to mint. So minting isn't always better than just buying $MAXI from the market, hence why it's more of an active strategy.
When a user mints, the MAXI rewards are linearly unvesting over 5 days. You can check the "Active" tab of the mint page to see your on-going mints, as well as claimable and pending rewards. If you try to mint while having an already existing and ongoing mint for the same asset, the vesting will reset to 5 days, so in that case it would be best to claim your rewards first, and then mint again.