Pools Comparison
Ferra, the dynamic liquidity layer on the SUI network, offers three Automated Market Maker (AMM) engines: DLMM, DAMM, and CLMM. Each is tailored for specific token types and trading strategies. The table below compares their definitions, unique features, advantages, disadvantages, and optimal use cases.
Definition
Dynamic Liquidity Market Maker: Uses discrete price bins for zero-slippage trades, dynamic fees, and single-sided liquidity.
Dynamic Automated Market Maker: Constant-product AMM with dynamic fees, optional concentrated liquidity, and broad price range.
Concentrated Liquidity Market Maker: Allocates liquidity in user-defined price ranges for efficient capital use and reduced slippage.
Unique Features
- Zero-slippage bins - Single-sided liquidity - Dynamic Bonding Curve (DBC) for token launches
- Memecoin pool with permanent liquidity locks - Yield farming integration - Flexible fee token selection
- Customizable price ranges - Individualized price curves for LPs
Price Model
Discrete bins: Fixed prices within bins for zero-slippage trades.
Constant-product curve: Prices adjust based on token ratios across full range.
Continuous ticks: Smooth price adjustments within user-defined ranges.
Liquidity Shape
Flexible distributions: Spot, Curve, or Bid-Ask for precise control.
Uniform or optional concentrated: Broad or focused liquidity placement.
Range orders: Liquidity concentrated within specific price ranges.
Price Impact
Zero within bins: No slippage for trades within active bin.
Variable: Slippage depends on pool depth and trade size.
Continuous: Slippage reduced within range, higher outside.
Position Management
Bin-based: LPs manage discrete price bins.
Pool-based: LPs manage overall pool, optional range settings.
Tick-based: LPs adjust positions within specific price ticks.
Advantages
- High capital efficiency - Zero slippage in bins - Flexible token launches
- Supports volatile tokens - Enhanced LP returns via farming - Builds trust with locked liquidity
- High capital efficiency - Higher fees in active ranges - Tailored liquidity placement
Disadvantages
- Complex bin management - Limited flexibility for volatile tokens - Higher IL risk in volatile markets
- Higher slippage than DLMM - Less precise control - Complex for new users
- Requires active range management - High IL outside ranges - Less dynamic fees
When to Use
- Blue-chip tokens, stablecoin pairs - - Token launches with DBC or single-sided liquidity
- Volatile tokens, memecoins - Yield farming focus
- Stable or semi-volatile tokens - Predictable price ranges
Key takeaways
Ferra’s DLMM, DAMM, and CLMM pools offer diverse liquidity solutions, enabling projects, liquidity providers, and traders to maximize capital efficiency through tailored strategies on the SUI network.
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