Source: Magma

Magma Finance today officially announced the launch of its innovative product ALMM (Adaptive Liquidity Market Maker), becoming the first "Adaptive & Dynamic" DEX product on the Sui blockchain. As an improved version of DLMM, ALMM significantly enhances liquidity efficiency and trading experience through discrete price bins and a dynamic fee mechanism, marking a major upgrade in the DeFi infrastructure of the Sui ecosystem.

Magma Finance, a leading DeFi protocol focused on Sui and the MOVE language, aims to address the pain points of traditional AMM models in terms of capital utilization, slippage control, and fee adaptability with the launch of ALMM. ALMM optimizes the dynamic allocation logic of DLMM by introducing discrete price bins to replace broad price ranges and adjusts fees in real-time based on market volatility. This not only makes it the first ecosystem on the Sui chain to deploy such a product but also provides developers and users with a more efficient liquidity solution, driving the rapid development of the entire Sui DeFi ecosystem.

Core Functions, Advantages, and Features of ALMM

The design core of ALMM lies in the combination of "adaptability" and "discretization," tailored specifically for the high-performance characteristics of Sui. Its main features include:

- Discrete Price Bins and Zero Slippage: Liquidity is divided into discrete price bins (similar to ticks), allowing trades within the same bin to achieve zero slippage execution. The algorithm automatically concentrates liquidity in active price ranges, avoiding idle funds and improving capital efficiency.

- Dynamic Adaptive Fees: Fees are adjusted in real-time based on market volatility—rising during high volatility to compensate for LP's impermanent loss risk and decreasing during low volatility to attract traders. This mechanism ensures LPs receive higher returns while providing traders with better execution prices.

- Flexible Liquidity Strategies and Unilateral Support: LPs can choose strategies such as Spot, Curve, or Bid-Ask, supporting unilateral liquidity provision, facilitating the rapid launch of new projects. Compared to traditional CLMM or DLMM, ALMM automatically adapts to market changes and integrates Sui's Move language to ensure security and efficiency.

These features make ALMM stand out as a benchmark product for liquidity management on Sui, helping projects attract liquidity and providing traders with a zero-slippage, efficient DeFi experience.

Explosive Growth in TVL and Active Points Program

On the eve of ALMM's launch, Magma Finance has already shown strong momentum. Through early testnet activities and collaborations and integrations within the ecosystem, the protocol's TVL has continued to grow. As of early September 2025, Magma ALMM has attracted thousands of users to participate in testing, with the total protocol TVL exceeding 20 million USD. The protocol's code has undergone multiple rounds of audits by leading security firms such as Zellic and Three Sigma.

To stimulate community participation, Magma Finance has launched a points program, allowing users to accumulate points by providing liquidity, trading, or completing tasks. Points will be converted into future airdrop rewards and governance rights. Magma Finance has also launched various community engagement activities on platforms like Galxe, attracting tens of thousands of users to participate.

For more details, please visit the Magma Finance official website.

This article is contributed and does not represent the views of BlockBeats.

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