DLMM (Dynamic Liquidity Market Maker) is an advanced model of Automated Market Maker (AMM) designed to improve capital efficiency and trading experience in decentralized finance (DeFi).
š¹Definition:
Instead of spreading liquidity evenly across the entire price curve (like Uniswap v2), DLMM allows liquidity providers (LPs) to dynamically allocate liquidity into specific price ranges. These ranges can shift or adapt according to market conditions, making liquidity more concentrated and responsive.
š¹Applications:
- Powering decentralized exchanges (DEXs) with deeper liquidity.
- Enabling multi-chain trading with lower cost and higher execution quality.
- Providing LPs with more control and optimization of their deployed capital.
š¹Benefits:
- Higher capital efficiency: The same liquidity creates more depth in chosen ranges.
- Reduced slippage: Traders get better prices with less volatility impact.
- Adaptive strategies: Liquidity can āmoveā dynamically as markets shift.
- Closer to CEX experience: DLMM narrows the gap between DEX and centralized exchanges.
š¹Notable projects building with DLMM:
MeteoraAG (Solana), saros_xyz (Solana),
@Kyber Network DMM, OKX DEX integrations.
šIn short: DLMM = the evolution of AMMs, combining DeFiās openness with the efficiency of order-book style trading.
āØāØāØAnd Nerve Network will be the big DLMM project (All blockchain) in crypto šÆ
#DLMMPools #Nerve #network #NULSAI