DAMM Overview

Dynamic Automated Market Maker (DAMM) is an advanced AMM that dynamically adjusts its pricing and fee strategies based on real-time market conditions, optimizing capital efficiency and minimizing losses for liquidity providers. Built natively on Sui, DAMM gives pool creators full control over fee curves, liquidity ranges, and launch mechanics, while LPs and launchpads benefit from smarter fee optimization out of the box.

Key Features of Ferra DAMM

• Dynamic Fee: Fees adjust automatically based on real-time market volatility. High volatility means higher fees to protect LPs; calm markets bring fees back down.

• Anti-Sniper Suite: On-chain fee scheduler starts fees high at pool launch and decays them over time (linear or exponential). Combined with whitelist-gated pre-launch access, bots are priced out from block one.

• LP Fee Collect Mode: Pool creators choose how fees are collected: from the input token on every swap (ON_BOTH), or always from the quote asset (ON_QUOTE), giving precise control over which token accumulates as fee revenue.

• Concentrated Liquidity: Pool creators define tick ranges at genesis. All liquidity concentrates within that band, maximizing capital efficiency with the constant-product (x*y=k) formula.

• Single-Sided Liquidity Launch: Bootstrap a pool with only one token. No need to supply both sides of the pair — ideal for token launches and launchpad integrations.

• Liquidity Locks: Lock LP positions on-chain with a lock_until timestamp. Supports permanent locks and vesting schedules. Lock durations are immutable once set — no admin override.

Key takeaways:

DAMM is tailored for LPs seeking higher yields, projects launching tokens, and launchpads aiming for sustainable liquidity. Its anti-sniper fee scheduler and single-sided liquidity make it particularly suited for memecoin and new token launches