I'm eligible for a @MMTFinance title deed NFT!
I can nominate 3 people, and each nominee will have a chance to receive their own NFT. Who wants to nominate? Leave a comment below 👇
Last week's flash crash demonstrated the vulnerability of order books in extreme events. Market makers can quickly withdraw their bids, leading to liquidity gaps and price crashes.
Order Books vs. AMMs: Key Differences
Order books rely on active market makers to provide liquidity.
AMMs provide liquidity by depositing assets, which can be verified on-chain. This crash highlights the liquidity illusion in order book models.
Behavior in Extreme Conditions
During rapid declines, market makers may withdraw their bids, leading to price gaps and jumps.
AMMs mitigate shocks by algorithmically maintaining price stability and constant liquidity.
Visibility of Liquidity
In AMMs, liquidity, asset ratios, and slippage are fully visible on-chain.
Order book systems are less transparent and can hide order activity and risks.
@MMTFinance's Positioning
Momentum is a centralized liquidity AMM DEX, natively built on Move and utilizing a ve(3,3) incentive mechanism. It focuses on building deeper pools, lower slippage, and a better trading experience within the Sui ecosystem. It is designed to create a virtuous cycle between liquidity provision and voting incentives.
Growth Cycle (ve(3,3))
Higher liquidity and lower slippage attract more traders.
More trading generates fees and rewards. Rewards and voting incentives encourage holding and accumulation of assets, thereby increasing the value of tokens like $MMT.
More Than Just a DEX
Momentum also offers tools such as Momentum X (identity, compliance, cross-chain RWA), a token issuance platform, an LP management treasury, and staking and multi-signature tools. Its goal is to combine traditional and crypto assets to provide better trading, yields, and pricing.
