Magma Finance, a decentralized exchange (DEX) protocol building on the Sui blockchain, has successfully closed a $6 million strategic funding round. The investment was led by prominent venture capital firms including HashKey Capital, SNZ Holding, SevenX Ventures, Puzzle Ventures, and Topspin Ventures. The round also received significant support from key DeFi ecosystem partners and angel investors, notably NAVI Protocol.
The protocol, which describes itself as "the adaptive liquidity layer on Sui," aims to solve capital inefficiency problems in the current Sui DEX landscape. Magma Finance identifies traditional Concentrated Liquidity Market Makers (CLMMs) as leading to fragmented liquidity and high management friction, resulting in low returns for liquidity providers (LPs) and poor execution for traders.
The funding will be used to build what the team calls "the most adaptive liquidity engine on Sui." The protocol's core solutions include consolidating fragmented liquidity by aggregating idle capital to increase market depth, automating management friction to make professional-grade market making accessible to retail users, and streamlining asset launches through an efficient launch platform for new Sui-based assets.
In addition to the funding announcement, Magma Finance revealed it has completed comprehensive security audits with top-tier firms Zellic and Three Sigma. These audit reports are publicly available, emphasizing the protocol's commitment to security and transparency ahead of its upcoming major milestones.
The protocol has already gained recognition within the Sui ecosystem, achieving the #1 ranked DEX position at Sui Demo Day and winning multiple hackathons. This reflects strong validation from both the Sui community and the broader DeFi sector.
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