Good afternoon, everyone! Last night I attended a friend's birthday party, and I didn't expect her to give me the first slice of cake she cut. The cake was really super delicious, with a texture similar to yogurt ice cream~ Unfortunately, eating too much can lead to weight gain, so I just took a small bite and quickly slipped away.

After a happy chat, let's get back to the main topic. Let's continue talking about @ferra_protocol, which everyone has been asking about recently~ Many people know it uses DLMM, but if you want to clearly explain what makes it better than traditional AMM, I guess not many can do so thoroughly. Actually, I didn't get it at first either. After studying it carefully, I realized that the key is in the details!

The most important thing is the design of the "discrete price range."
Traditional AMMs spread liquidity evenly across the entire price curve, resulting in most of the funds lying in ranges where no trading happens—completely wasted!

But Ferra is different. It allows project teams to precisely define the price ranges where trading might occur, concentrating liquidity in these "hot spots." This way, the funds are truly used efficiently instead of idling away.

Another thoughtful feature is single-sided liquidity.
In the past, market making required both tokens to participate, and sometimes you only had a high-quality asset but lacked the other token, so you could only watch opportunities slip away.

Ferra directly solves this problem. Even if you only hold one type of coin, you can easily become an LP—no need to worry about gathering tokens anymore. The barrier to entry is lowered instantly!

Plus, with DAMM's dynamic fee rate, it's practically the guardian of LPs!
When the market is stable, the fee automatically decreases to attract more traders. If the market fluctuates significantly, the fee immediately increases to prevent arbitrageurs from exploiting LPs. No need for us to monitor and adjust daily, saving a lot of effort~

What surprised me the most is the multi-asset collateralization feature.
For those of us involved in the Sui ecosystem, it's common to hold a bunch of scattered small tokens. Previously, participating in market making meant converting everything into mainstream coins first—troublesome and potentially losing on the spread. Now, these scattered assets can be directly used as collateral to open positions, without extra hassle. For those with diversified holdings, this is truly a hands-free design~
#Ferra #Web3 #DLMM