The Modular Liquidity Framework Reshaping DeFi Infrastructure



There's been a notable shift in how DeFi protocols approach liquidity design. Rather than forcing a one-size-fits-all liquidity model across all trading pairs, some emerging solutions are taking a more flexible route—and it's worth paying attention to.

The approach gaining traction on Sui involves building a modular liquidity architecture that lets different market structures coexist. Instead of picking between Dynamic Liquidity Market Maker (DLMM), Concentrated Liquidity Market Maker (CLMM), or Decentralized Automated Market Maker (DAMM) models, protocols can now enable multiple mechanisms simultaneously.

Why does this matter? Because different trading pairs have different characteristics. Some markets benefit from concentrated liquidity pools. Others work better with dynamic mechanisms that adjust spreads based on volatility. A modular framework eliminates the false choice—markets can select the optimal liquidity structure for their specific needs.

This pragmatic design philosophy stands out from the trend of building monolithic systems. It's infrastructure thinking at its finest.
SUI-3,53%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)