CLMM Overview

Concentrated Liquidity Market Maker

Cetus CLMM (Concentrated Liquidity Market Maker) is an advanced AMM design that allows liquidity to be concentrated into specific price ranges rather than uniformly along the entire price curve. Traditional AMMs often leave most liquidity idle, particularly for assets with predictable prices like stablecoins. CLMM solves this by enabling LPs to allocate capital precisely where trading activity occurs, maximizing fee generation and capital efficiency.

LPs can create multiple positions in the same pool with independent price ranges, simulating custom liquidity curves to match market trends. Swaps interact dynamically with these positions, providing tighter execution and optimized slippage.

Cetus CLMM is inspired by the classic Uniswap V3 model and fully developed in Move on Sui, optimized for Sui’s native blockchain capabilities and unique architecture.