Magma Overview

Magma Finance is a cutting-edge AMM DEX designed for MOVE-based blockchains.

In Magma, we’re combining the classic concentrated liquidity AMM model with the best practice of ve(3,3) tokenomics, providing long-term incentives for early protocol participants and long-term builders on Sui.

Permissionless and Open Access

Magma Protocol is designed to be fully permissionless, allowing anyone to participate without restrictions. Users can create new trading pools for any asset, enabling the listing of niche or emerging tokens. Developers can also integrate Magma’s liquidity into their own applications, such as lending protocols or yield aggregators, without requiring approval. This open access fosters innovation and ensures that Magma’s liquidity is available to the entire ecosystem, promoting inclusivity and growth.

Programmable Liquidity with Concentrated Ranges

Magma’s Concentrated Liquidity Market Maker (CLMM) allows users to deploy advanced trading and liquidity strategies. Traders can execute limit orders and range orders, similar to centralized exchanges (CEXs), with minimal slippage. Liquidity providers (LPs) can concentrate their funds in specific price ranges, maximizing their capital efficiency and earning higher fees. This flexibility enables users to optimize their strategies and achieve better returns, making Magma a powerful tool for both traders and LPs.

ve(3,3) Tokenomics for Sustainable Growth

In v2, Magma’s ve(3,3) model will start to incentivize long-term participation and aligns the interests of all stakeholders. Users who lock $MAGMA tokens receive veMAGMA, which grants them voting rights and a share of protocol fees. LPs receive MAGMA token as rewards, encouraging them to provide liquidity and participate in governance. This model reduces sell pressure, stabilizes the token economy, and rewards long-term contributors, ensuring the protocol’s sustainability and growth.

Community-Driven Governance

Magma’s governance model will empower the community to shape the protocol’s future. veMAGMA holders can vote on proposals, such as adjusting fee structures, adding new features, or listing new assets. The protocol’s earnings are distributed to active participants, ensuring that the community is rewarded for its contributions. This decentralized approach fosters long-term engagement and aligns the interests of all stakeholders, creating a strong and collaborative ecosystem.