ALMM

Overview

Magma’s ALMM (Adaptive Liquidity Market Maker) is an evolution of the Automated Market Maker (AMM) paradigm, designed to further increase the efficiencies of traditional liquidity models. Unlike classic AMMs (e.g., Uniswap V2’s x * y = k) or CLMMs (e.g., Uniswap V3’s range-based liquidity), ALMM uses a bin-based liquidity structure. Each bin represents a discrete price level (e.g., $3.00, $3.10, $3.20 for a SUI/USDC pair), with liquidity allocated specifically to that price. This creates a step-function liquidity curve, blending AMM automation with order book-like precision.

Key Features

🎯 Better Capital Efficiency - Discrete bins eliminate wasted liquidity gaps

💰 Dynamic Fee Structure - Fees adapt to volatility (CLMM uses fixed fees)

🏆 Simplified LP Experience - No complex range management required

⚡ Zero Slippage Trading - Within active bins, unlike CLMM's gradual slippage

🔥 First DLMM on Sui - Capture the entire untapped market