DLMM Overview

Dynamic Liquidity Market Maker

Cetus DLMM (Dynamic Liquidity Market Maker) is an advanced AMM design where liquidity is organized into discrete price bins. Each bin can hold a targeted amount of token X or token Y, allowing swaps to execute with minimal slippage within active bins. DLMM continuously adjusts both the liquidity distribution and the trading fees based on market activity and volatility, ensuring that high-activity areas receive appropriate liquidity while fees respond to real-time market conditions.

Compared with classic CLMMs, Cetus DLMM combines volatility-sensitive fee adjustments with granular bin-level liquidity control, enabling LPs to respond more effectively to changing market conditions. While DLMM and CLMM can each operate independently, their parallel deployment offers a more comprehensive solution, accommodating a wider range of LP strategies and trader demands.

Cetus DLMM draws inspiration from market-proven dynamic liquidity models like Meteora and LFJ (formerly Trader Joe), and is customized and optimized to leverage Sui’s unique capabilities, achieving optimal performance and efficiency for native DeFi applications on the Sui blockchain.