Using "plain language" to popularize three AMM engines - DLMM/CLMM/DAMM @The biggest highlight of ferrasprotocol is the first DEX to natively integrate DLMM, CLMM, and DAMM on Sui, allowing users to choose the most suitable mode between different pools. one ⃣ CLMM (Concentrated Liquidity Market Maker) The mechanism is similar to v3, where LP can concentrate liquidity in a certain price range, Although there are still some slippage points within the range, the efficiency is hundreds of times higher compared to traditional AMM Suitable for blue chips or stablecoins For example, USDC-SUI, WAL-SUI two ⃣ DLMM (Dynamic Liquidity Market Maker) Can be understood as CLMM promax Solved some of the drawbacks of CLMM Core mechanism: Bin model (grid model) 1. Prices are no longer smooth curves, but small grids, each corresponding to a fixed price For example, SUI/USDC: one grid corresponds to 2.5USDC/SUI, the next grid is 2.51... and so on 2. Each grid is completely fixed and follows a pattern This also means trading in the same grid ➡️ The price is completely fixed ➡️ Zero slip point When the liquidity in this grid is bought up, it will jump to the next grid The result is ➡️ Small and medium-sized transactions have almost zero slippage, while large transactions have much smaller slippage than CLMM This core mechanism solves the problem of high slippage, so how can low flexibility be solved? Therefore, DLMM has three strategies to choose from 1. Uniform mode: All your liquidity is concentrated in one grid, which maximizes the utilization of funds, but it becomes ineffective as soon as the price changes! More suitable for stablecoin pairs: USDC-USDT 2. Curve: It can be understood as a normal distribution, with the most bins in the middle and gradually decreasing on both sides, suitable for coins with smaller fluctuations 3. Bid ask spread: There are the most squares on both sides and fewer squares in the middle. This meme coin is suitable for high volatility and is conducive to capturing trading volume during price fluctuations And there are also dynamic transaction fees Large price fluctuations ➡️ Fee increases, with small fluctuations ➡️ Fee decrease DLMM is mainly popular on Sol's @ MeteoraAG and SUI's Ferra, and the interface is very simple, making it easy for beginners to get started three ⃣ DAMM (Dynamic Automated Market Maker) This is an innovative new thing, similar to v2 Simply explain the working principle: automatic concentration of liquidity during low volatility, automatic dispersion of liquidity during high volatility, and the rate can also be dynamically adjusted The core mechanism introduces a oracle to dynamically adjust weights/rates/concentration Compared to the first two, it has the highest degree of automation and is suitable for beginners