About DLMM Trading Experience & LP Efficiency

When prices trade within a narrow range for a long time, and liquidity is evenly distributed along the entire curve, it essentially wastes capital, resulting in high slippage, shallow depth, and diluted LP returns. These issues are not parameter problems but are inherent to the structure of AMM itself.

The significance of DLMM lies in acknowledging that the market occurs in concentrated zones, with liquidity deployed around real trading ranges. This reduces trading costs and increases capital efficiency. The core difference is at the experience level, not just aesthetic improvements at the engineering level.
The real dividing line is on the LP side.

When liquidity can be finely allocated, LPs are no longer just passive fund providers but participate in the market structure itself. Returns come from allocation efficiency rather than market timing.
This is also why some new-generation DEXs now place DLMM at the core rather than as an optional feature.

Protocols like Ferra, which are designed from the ground up around DLMM for trading, incentives, and LP organization, cannot be evaluated using the old AMM framework. But from the perspective of trading experience and LP efficiency, the answer is already very clear.

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