Momentum: The Ve(3,3) Liquidity Engine of the Sui Ecosystem

Momentum is a native Ve(3,3) DEX on the Sui chain, built using the Move language. Although it has only been online for 7 weeks, it has attracted over $57M in TVL and over $2.0B in cumulative trading volume, steadily moving towards becoming the "Aerodrome on Sui".

First, let's review the origin of the Ve(3,3) mechanism. There have been two major innovations in the DEX space:

-- The first was Curve introducing veToken, which locks tokens to gain voting rights that influence liquidity incentive distribution;

-- The second was OlympusDAO introducing (3,3) game theory, realigning the risks and benefits of LPers, Traders, and protocol token holders.

Ve(3,3) is a combination of these two mechanisms and is currently the most powerful DEX token economic model. The core idea of Ve(3,3) can be summarized as: deep liquidity drives value discovery, precise incentives maximize capital efficiency, and long-term collaboration achieves win-win outcomes for multiple parties. It addresses the biggest drawback of veTokens: insufficient binding of liquidity providers and protocol interests, leading to persistent "mine, withdraw, and sell" behaviors.

Momentum adopts a dual-token design: $MMT as the protocol token and $veMMT as the governance voting token. Its Ve(3,3) mechanism forms a closed-loop system driven by four core elements: locking, governance voting, bribery, and revenue sharing.

Locking is the foundation of the entire system, where users can lock $MMT for different periods to obtain different ratios of $veMMT: locking for 4 years yields an equal amount of $veMMT, locking for 1 year yields one-quarter, and locking for 1 week yields only 1/208. These $veMMT tokens linearly decay over time, and users can extend the locking period at any time to maintain or increase their voting power.

After holding $veMMT, users can participate in governance voting every 7 days to decide how liquidity incentives are distributed. At this time, liquidity deployers (usually project parties) can attract votes to the liquidity pools they care about by providing additional incentives (commonly known as "bribery"). The best part is that all transaction fees generated are allocated entirely to participating $veMMT holders instead of liquidity providers, which forces liquidity providers to deeply engage in collaboration to share protocol revenues.

The brilliance of this mechanism lies in creating a positive feedback loop. From the perspective of liquidity providers, deep liquidity results in low slippage, attracting more trading volume and transaction fees, which in turn attracts more votes and incentives; from the project party's perspective, providing bribery incentives can attract votes to receive more liquidity incentives, enhance pool yield, attract more LP participation, and ultimately drive demand for token purchases; from the perspective of $veMMT holders, voting for high-yield pools leads to those pools receiving more incentives and liquidity, capturing more trading volume, increasing yields, and boosting $MMT demand, forming a perfect closed loop.

You may ask, why did Momentum choose to launch on Sui? This is a strategic choice of positioning.

As a next-generation high-performance public chain, Sui has many advantages: high concurrency and high TPS surpassing EVM while being more stable than Solana, no global authorization mechanism effectively avoids asset theft risks, Gas fees remain predictable even under high load, and Circle has deployed native USDC for direct integration with mainstream exchanges. More importantly, the Sui ecosystem is already taking shape, with DeFi and RWA completed, Meme triggering a wealth effect, and new sectors like BTCFi, Game, and AI rapidly entering.

However, Sui currently lacks a deeply integrated liquidity engine, and this shortcoming directly restricts user experience and ecosystem development. For example, large transaction slippage on the Base chain through Aerodrome is only 0.05%, while on the Sui chain it currently reaches 0.25%.

Momentum precisely fills this crucial gap. It will bring deeper liquidity, lower slippage, and a better trading experience to Sui, thereby capturing more trading volume and forming a positive cycle. If we were to summarize it in an equation: Sui × Momentum = Base × Aerodrome. This is not an unfounded comparison; the trading volume market share of Aerodrome on the Base chain is as high as ~60%, proving that the ve(3,3) model is a validated successful formula.

Finally, let's take a look at the team and support behind Momentum: its founder is one of the original engineers of Meta Libra (now Diem) and has previous relationships with both the Sui and Aptos core teams; in terms of financing, it has completed $10M, with leading investor Varys Capital backed by the Qatari royal family, and important investors including Sui Foundation, co-founders of Mysten Labs, as well as top U.S. institutions such as Coinbase Ventures and Circle Ventures. This dual endorsement from the Sui ecosystem (Sui Foundation + Mysten Labs) demonstrates the strategic value of Momentum.

In summary, Momentum is not just another DEX, but the liquidity engine of Sui, and its ve(3,3) mechanism is expected to bring deep liquidity enhancement to the Sui chain, rediscover ecosystem value, increase activity and prosperity, and attract significant inflows of capital and users. If you believe in the prospects of Sui as a next-generation high-performance public chain, then Momentum, as its "liquidity heart," deserves close attention. Just as Aerodrome is to Base, Momentum is expected to become an important infrastructure and value engine of the Sui ecosystem.

That's all.