Cetus officially launched DLMM (Dynamic Liquidity Management Mechanism) in the second half of the year, a liquidity solution designed specifically to address market volatility.

The core advantage of DLMM is that both liquidity providers and traders can benefit from it. Specifically, LPs can precisely adjust their capital deployment positions based on market conditions, rather than being forced to spread liquidity indiscriminately; traders gain access to smarter trading depth. The biggest innovation of this mechanism is "strategy awareness"—the system can understand what the market is doing, rather than responding rigidly.

Compared to traditional uniform liquidity models, DLMM makes capital allocation proactive and flexible. Running this system on the Sui chain offers obvious speed and cost advantages. Especially during periods of high volatility, this dynamic adjustment capability becomes particularly important—LPs are no longer passively accepting slippage and impermanent loss but can better control risk and return through strategic parameters.

This is a substantial upgrade to the DeFi liquidity model, and it is worth paying attention to its application performance within the Sui ecosystem.