Momentum is not just a DEX; it is also a driving force for liquidity integration and ecological development.
During the current upward cycle of the cryptocurrency market, the public chain Sui, based on the Move language, has performed exceptionally well. As the Sui ecosystem gradually expands, various applications within the ecosystem have garnered widespread market attention, among which one of the fastest-growing and most discussed projects is the decentralized exchange (DEX) Momentum.
In just four months since its launch, Momentum has risen to become the platform with the highest trading volume and liquidity share within the Sui ecosystem, while also actively expanding into the RWA (real-world assets) direction, demonstrating a more long-term strategic layout. This article will systematically outline Momentum's functional mechanisms, data performance, and future plans, exploring its positioning and potential within the Sui ecosystem.
1. What is Momentum?
Momentum is the fastest-growing decentralized exchange in the Sui ecosystem. Since the launch of its test version at the end of March last year, it has rapidly accumulated users through differentiated liquidity strategies and product mechanisms, gradually establishing its leading position in the Sui ecosystem.
Relevant data confirms its growth rate: the highest TVL reached $180 million, cumulative trading volume exceeded $8.8 billion, and the number of users surpassed 1.83 million. For an emerging ecosystem, this performance demonstrates strong capital inflow and user recognition.
The role of Momentum in the Sui ecosystem can be understood from two aspects:
First, as the liquidity center of the ecosystem.
Momentum carries the vast majority of liquidity allocation within Sui, becoming the infrastructure for other projects to establish trading and liquidity. With the future large-scale entry of RWA and cross-chain assets, its role as a "total liquidity hub" may be further strengthened.
Second, it adopts an advanced ve(3,3) mechanism.
Unlike traditional DEXs that rely on short-term incentives to maintain liquidity, Momentum binds long-term stakers with ecological development through the veMMT governance token design, creating a more stable liquidity environment. This mechanism not only enhances participation but also contributes to the sustainable development of the ecosystem.
Overall, Momentum's position in the Sui ecosystem is similar to that of Curve on Ethereum or Velodrome on other public chains; it is not just a DEX but also the underlying liquidity infrastructure of the ecosystem.
2. Core Mechanisms and Functions
2.1 Basic DEX Functions
Momentum adopts a concentrated liquidity (CLMM) model to improve capital utilization efficiency and reduce slippage for large trades. It currently supports trading of major assets within the Sui ecosystem, allowing liquidity providers (LPs) to earn transaction fee revenue while enhancing returns through different strategies.
2.2 ve(3,3) Mechanism
Momentum's mechanism design draws from and optimizes the ve(3,3) model proposed by Andre Cronje:
Lock-up mechanism: The longer MMT is locked, the more veMMT is obtained.
Governance voting: veMMT holders can decide the allocation direction of liquidity incentives.
Incentive and bribery system: Project parties can attract votes through additional rewards to gain more liquidity support.
Fee distribution: Platform fees are only distributed to veMMT holders, encouraging long-term lock-up and governance participation.
Through the above mechanisms, Momentum forms a positive cycle of "voting—liquidity—trading volume—token demand," balancing liquidity stability and token value growth.
2.3 Automated Rebalancing Function
Momentum provides LPs with automated rebalancing tools to optimize capital allocation based on set strategies, improving yield efficiency and reducing manual operation costs.
2.4 Token Generation Lab (TGL)
Momentum also plans to launch TGL (Token Generation Lab) to help quality Sui projects complete token issuance. TGL projects undergo strict selection, with some receiving exchange support, providing additional participation opportunities and incentives for veMMT holders.
3. Technology and Security
As a native DEX of Sui, Momentum has invested significantly in security design:
Multi-signature management: Important operations require multiple parties to jointly sign, reducing single-point risk.
Code auditing: Core contracts undergo professional audits with public reports to enhance transparency.
Security infrastructure: Leveraging the inherent security features of the Move language, combined with real-time monitoring mechanisms, effectively addresses potential attacks.
Previously, when Cetus encountered a security incident, the Sui ecosystem demonstrated a rapid response capability. Momentum, as part of this ecosystem, also inherits this advantage.
4. Team and Investment
The core members of the Momentum team have extensive experience in Sui development and DeFi protocols, with CEO and co-founder ChefWEN previously serving as an engineer for the Facebook Libra project and being a senior expert in the Move language.
In terms of capital support, Momentum has received deep support from the Sui Foundation and Mysten Labs, as well as investments from internationally renowned institutions such as Coinbase Ventures, Circle Ventures, and Jump Crypto, along with participation from leading Asian institutions like OKX Ventures and Amber Group. These resources not only bring funding but also assist in liquidity building, ecological cooperation, and token distribution.
5. Ecological Performance
Momentum has achieved the following in a short period:
A peak TVL of $180 million and a cumulative trading volume of $8.8 billion, ranking first in the Sui ecosystem;
The number of users has surpassed 1.83 million, with governance participation and incentive mechanisms driving user growth;
Compared to similar DEXs, it has significant advantages in liquidity depth, mechanism design, and ecological support.
Its strategic goal is to become the "liquidity engine" of the Sui ecosystem and further expand its boundaries through TGL and MomentumX.
6. Future Plans: MomentumX and RWA
Momentum is not only positioned as a DEX but will also enter the RWA track through MomentumX.
RWA is one of the most关注的 trends in the current cryptocurrency market. MomentumX aims to address three major challenges in the existing RWA market: standard fragmentation, insufficient liquidity, and off-chain compliance risks. Its solutions include:
Unified identity verification (based on ZK technology and Walrus);
Cross-platform interoperability;
Embedded smart compliance.
Through MomentumX, institutional investors can more easily participate in tokenized asset trading, while ordinary users can engage in operations such as collateralization and liquidity provision with RWA assets. The overall goal is to build a global RWA market infrastructure.
7. Conclusion
Momentum has established a clear core position in the Sui ecosystem, with its DEX functions, ve(3,3) mechanism, automated rebalancing, and TGL platform creating a complete product system. As MomentumX progresses, its business scope is expected to expand from DeFi to the RWA market, further enhancing its ecological influence.
For the Sui ecosystem, Momentum is not just a DEX; it is also a driving force for liquidity integration and ecological development. Its continuous expansion and mechanism innovation may bring long-term value to Sui and the broader blockchain ecosystem.
Original article link: https://coinness.com/community/opinion/9020
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
