Original source: Magma Finance

Magma Finance, dedicated to building the most adaptive liquidity engine on the Sui network, is pleased to announce the successful completion of its strategic financing round.

This round of financing received support from leading industry institutions such as HashKey Capital, SNZ Holding, SevenX Ventures, Puzzle Ventures, Topspin Ventures.

Additionally, this round of financing was strongly backed by core DeFi ecosystem partners and angel investors, including NAVI Protocol, marking a high level of recognition from mature DeFi institutions, ultimately achieving a total financing amount of $6 million.

It is worth mentioning that Magma won first place in the decentralized exchange (DEX) track at the Sui Demo Day and has stood out multiple times in hackathon competitions, fully reflecting the high recognition and support from the Sui ecosystem and the broader DeFi community for its technical strength and development prospects.

Breaking the Liquidity Dilemma of the Sui Network

The original intention of Magma Finance is to align the interests of traders, governance participants, and liquidity providers. The protocol aims to create a decentralized trading platform (DEX) that excels in both user experience and capital efficiency within the ecosystem.

Although the Sui network has performed well, there are still fundamental issues of low capital efficiency in the current decentralized exchange track. The traditional concentrated liquidity market maker (CLMM) model often leads to fragmented liquidity and high management friction, resulting in meager returns for liquidity providers (LPs), while traders also struggle to achieve quality trade execution.

Magma Finance will tackle these core bottlenecks through the following methods:

· Integrating Fragmented Liquidity: By aggregating idle funds, Magma not only enhances market depth but also increases the fee income for liquidity providers (LPs).

· Automating Management Friction: Eliminating the cumbersome manual adjustments of liquidity tiers, allowing ordinary retail investors to easily engage in professional-level market-making activities.

· Simplifying Asset Listing Processes: Magma has built an efficient asset listing platform to help new assets on the Sui network achieve seamless liquidity cold starts.

Safety First

Magma Finance prioritizes user safety and protocol integrity, having partnered with leading auditing firms Zellic and Three Sigma to complete comprehensive security audits. The relevant audit reports have been made public, laying a solid foundation of transparency, trust, and robust code for the protocol's subsequent achievement of significant milestones.

About Magma Finance

Magma Finance is an adaptive liquidity layer on the Sui network. By overcoming the industry challenge of "assets being live upon listing," Magma has created a sustainable liquidity incentive engine that will drive the next wave of DeFi application proliferation in the Move ecosystem.