Common dilemma in on-chain transactions: when a large order enters the market, slippage skyrockets. Liquidity providers invest their funds into pools, expecting steady profits, but as prices fluctuate, their capital gets stuck in ineffective ranges—this is the so-called impermanent loss, which can outweigh the gains.



Market size is growing, and that's true. But the real issue is that capital efficiency hasn't kept pace. A large amount of funds remains idle, and the utilization rate of liquidity pools remains underwhelming. This inefficiency is indeed common in DeFi.

Recently, a project in the Sui ecosystem has been attempting to break this deadlock by optimizing liquidity allocation mechanisms, allowing LPs' funds to participate more fully in price discovery. This innovative approach is worth paying attention to—it directly targets the root cause, not just patching the problem but redesigning the flow logic of capital on-chain. To truly understand how this mechanism works, you can check out their actual demonstration case.
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NFTragedyvip
· 7h ago
Oh no, the impermanent loss thing is really annoying. I've seen too many cases of LPs getting wiped out... The idea behind Sui is somewhat interesting, but to be honest, there aren't many that can actually be implemented.
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consensus_whisperervip
· 8h ago
Impermanent loss, to put it simply, is the blood and tears story of LPs. The slippage is huge and really outrageous. The Sui project sounds good, but we need to see how it performs in practice. It's always about optimization and redesigns; we're tired of the same tricks. The key is whether it can truly make money. DeFi has never cracked the issue of low liquidity utilization. I'm curious how they plan to tackle it this time. Honestly, large orders cause slippage to explode. After all this time, the pool depth problem still hasn't been fully resolved.
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AirdropHustlervip
· 2025-12-31 07:39
Impermanent loss is really something else; with each fluctuation, you're trapped, feeling like you're raising goldfish... Sui's new approach is indeed different, worth checking out.
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CommunityLurkervip
· 2025-12-31 07:32
Impermanent loss is really disgusting. Earning a fee and ending up losing money... Is the Sui project reliable? I've heard similar opinions before. What was the final outcome? The moment slippage exploded, I knew I was going to lose money. If the liquidity design is poor, there's no way to recover. Improving liquidity allocation? Sounds great, but I'm just worried it might be another PPT plan, and in practice, it’s the same old story. Why are DeFi LPs always losing money? Can this be truly solved this time, or will it just continue to harvest the newbies?
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AirdropHunter007vip
· 2025-12-31 07:28
Impermanent loss is really something else; once you invest, you're stuck, and the slippage is even more outrageous. The Sui project has a pretty good idea; finally, someone is thinking about truly solving the problem instead of just patching it.
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SnapshotDayLaborervip
· 2025-12-31 07:26
Impermanent loss really pisses me off; the money invested feels like it's cursed. Sui seems to have the right direction, but real implementation is the key. When slippage explodes, it breaks your heart; no matter what liquidity says, it's useless. This optimization mechanism sounds good, but I'm afraid it's just talk on paper. Low capital efficiency has been troubling DeFi for a long time; finally, someone is taking it seriously? LPs should unite and stop getting cut so badly. Can the Sui ecosystem really solve the problems this time? Let's wait and see. A large order coming in feels like an earthquake; liquidity disappears instantly. I'm optimistic about innovative ideas, just worried it might end in failure. The quality of mechanism design can best be judged through live demonstrations.
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DuskSurfervip
· 2025-12-31 07:24
Impermanent loss is really the ultimate, it's like taxing LPs... --- The moment slippage exploded, I knew this loss was inevitable. Feels like working for the big players. --- Idle funds are indeed a stubborn problem; DeFi is just so disappointing. --- Is Sui working on liquidity optimization? It sounds interesting, but whether it can truly solve the problem depends on actual performance. --- Re-designing the capital flow logic again, it always sounds impressive, but I'm just worried it's another pie in the sky. --- The fee-earning mechanism for LPs is fundamentally flawed. Can it really be improved this time? --- Rather than saying it's a breakthrough, it's more like patching holes; the core issues remain unaddressed. --- Having your money stuck in an ineffective zone is really suffocating... Does Sui's solution really work that well?
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