# DLMM Overview **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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://cetus-1.gitbook.io/cetus-docs/dlmm/dlmm-overview.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.