Momentum Finance: Sui's DeFi Liquidity Engine

Generated by AI AgentCoin World
Friday, Sep 26, 2025 12:44 am ET1min read
Aime RobotAime Summary

- Momentum Finance, a CLMM on Sui, has rapidly grown to $90.8M TVL and $59.5M daily trading volume since its March 2025 launch.

- Its concentrated liquidity model enables 280%+ APRs for pairs like ETH–SUI, attracting 200,000+ wallets through optimized fee capture.

- Institutional backing from OKX Ventures and Coinbase Ventures validates its $3B+ trading volume and ve(3,3) tokenomics aligning LP/trader incentives.

- The platform's Bricks points system and 100% fee distribution to liquidity providers create a flywheel effect driving Sui's DeFi growth.

Momentum Finance, a concentrated liquidity market

(CLMM) on the blockchain, has emerged as a pivotal player in the DeFi ecosystem, leveraging the network’s high-performance infrastructure to deliver exceptional returns. Launched in late March 2025, the platform has rapidly accumulated $90.8 million in total value locked (TVL) across its liquidity pools as of June 2025, with daily trading volume reaching $59.5 million. Annualized fees generated by the protocol stand at approximately $21.8 million, underscoring its efficiency in capital allocation and yield generation Complete Momentum Finance Guide: Swaps, LP Strategies[1].

The platform’s appeal lies in its CLMM model, which allows liquidity providers (LPs) to deploy capital in specific price ranges, optimizing returns by concentrating liquidity where trading activity is most active. This approach reduces slippage and enhances fee capture compared to traditional AMMs. Momentum’s pools offer some of the highest annual percentage rates (APRs) on Sui, including 280% for the ETH–SUI pair, 273% for DEEP–SUI, and 152% for LBTC–SUI, attracting both retail and institutional participants Complete Momentum Finance Guide: Swaps, LP Strategies[1]. The platform’s user base has grown to over 200,000 unique wallets, with 42,000 active users in the first two months post-launch Complete Momentum Finance Guide: Swaps, LP Strategies[1].

Institutional confidence in Momentum has been reinforced by strategic investments and partnerships. OKX Ventures, a division of the cryptocurrency exchange OKX, committed to the platform in June 2025, citing its $70 million+ TVL and $3 billion+ trading volume in just two months. This backing, alongside early support from Coinbase Ventures and the Sui Foundation, highlights the protocol’s alignment with the network’s vision for scalable DeFi solutions Complete Momentum Finance Guide: Swaps, LP Strategies[1]. Momentum’s integration with the OKX Wallet further simplifies access for users, enabling seamless liquidity provision and trading on Sui .

The platform’s success is also attributed to its ve(3,3) tokenomics model, which aligns incentives between LPs, traders, and the protocol. This structure ensures that 100% of swap fees and emissions are distributed to liquidity providers, creating a flywheel effect that drives sustained growth. Momentum’s native “Bricks” points system, which rewards LPs for participation, is expected to play a role in future governance and token distribution, adding another layer of utility for stakeholders Momentum DEX Guide: Boost Yield with ve(3,3) on Sui[2].

As Sui’s DeFi ecosystem continues to expand, Momentum Finance’s role as a liquidity engine is critical. The platform’s ability to deliver high yields, coupled with Sui’s low-cost, high-throughput infrastructure, positions it to capture a significant share of the growing demand for on-chain capital efficiency. With TVL and user metrics showing consistent growth, Momentum exemplifies how next-generation AMMs can redefine liquidity provision in decentralized markets Complete Momentum Finance Guide: Swaps, LP Strategies[1].