# 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 ALMM on Sui** - Capture the entire untapped market --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://magma-finance-1.gitbook.io/magma-finance/almm.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.