Magma Finance Launches ALMM, First Adaptive DEX on Sui Blockchain

The DeFi protocol introduces its Adaptive Liquidity Market Maker with dynamic fees and improved capital efficiency, alongside a points reward campaign.

SUI

Summary

Magma Finance has launched its Adaptive Liquidity Market Maker (ALMM) on the Sui blockchain, marking the first adaptive and dynamic decentralized exchange in the network. ALMM, an upgrade to DLMM, incorporates discrete price bins, zero slippage within bins, and dynamically adjustable fees based on market volatility. It also supports single-sided liquidity and enhanced slippage control. Prior to launch, Magma Finance’s TVL exceeded $20 million, with security audits conducted by Zellic and Three Sigma. The launch includes a points reward campaign for users.

Terms & Concepts
  • ALMM (Adaptive Liquidity Market Maker): A decentralized exchange model that adapts liquidity and fees dynamically based on market conditions to improve trading efficiency and capital utilization.
  • DLMM: A liquidity market maker model using discrete price bins, serving as the predecessor to ALMM with lower adaptability to dynamic fee changes.
  • Sui Blockchain: A high-performance Layer 1 blockchain designed for fast, low-cost decentralized applications and optimized user experience.