# Introduction ### What is MovEX? MovEX is a community-driven organization built to provide the best trading and liquidity provision experience for users and project developers on \[Sui]\() eco-system. The core products of MovEX are 1) a concentrated liquidity AMM + order book hybrid liquidity Decentralized Exchange (DEX); 2) Intelligent Liquidity Allocation service, which automatically adjusts liquidity to boost capital efficiency and market-making returns; 3) ILO (initial liquidity offering) service for project developers which provides customized token launch options to maximize raised fund. The following document details the functional and technical aspects of the ecosystem products. ### How do MovEX products compare to typical DEX/Launch Pad services? #### Hybrid Liquidity vs. AMM vs. Orderbook AMM has been one of the most fundamental innovations in the Defi space. It democratized liquidity provision, dominated initially by professional traders and institutions. AMM made it possible for retail users without advanced knowledge about finance to also earn passive income by providing liquidities. However, the most popular constant product AMM is known to suffer from low capital efficiency, leading to a high trading slippage problem. Uniswap V3 proposed concentrated liquidity AMM giving liquidity providers the flexibility to provide liquidities at a custom range and making it possible to provide single-sided liquidity without owning the token pair. Concentrated liquidity significantly improved the capital efficiency of the AMM, reduced trading slippage, and made it possible to develop customized liquidity provision strategies. Concentrated liquidity can also simulate advanced order types such as limit orders. However, concentrated liquidity suffers from two significant problems — fairness problems and poor user experience for advanced order types. First, since the liquidity on AMM is unordered, the miner, or the validators in the case of PoS, can front-run other liquidity providers by injecting a dominant amount of liquidity around the spot price upon detecting a swap transaction from the mempool, therefore eating up most of the commission fees of this transaction. This is unfair for standard liquidity providers. The second problem is the poor user experience for advanced order types. Although concentrated liquidity can be viewed as an “unordered” order book with a fixed tick size, it’s still inconvenient or even infeasible to simulate certain advanced order types that professional traders require. For example, to stimulate limit orders, a trader has to first provide liquidity on a single side at the desired price range, wait for the token price to cross the selected price range, and then withdraw the liquidity. This would require the trader to either manually wait for the cross to occur and withdraw the liquidity or write a program to do it, causing a lot of hustle and defeating the purpose of a limit order. Another required order type, stop-loss order, cannot be simulated with concentrated liquidity. MovEX combines the best of AMM and order book and delivers the ultimate trading and liquidity provision experience for everyone by creating a hybrid liquidity pool. Internally, MovEX has a settlement engine that distributes orders between AMM and order book, guaranteeing both minimal slippages for traders and fairness for liquidity providers. Retail liquidity providers enjoy the convenience of providing single-sided liquidity at a custom price range and efficiently manage the impermanent loss. Professional traders and liquidity providers enjoy the advanced features provided by the order book. Moreover, traders can also earn commissions if their limit order is filled. This is because limit orders are considered makers and, therefore, can receive commissions like liquidity providers, similar to centralized exchanges. #### ILO vs. LaunchPad ILO stands for Initial Liquidity Offering, which aims to provide the best fundraising process for project owners. Traditionally, a fundraising process is split into two parts: a private token sale, where the project owners list their project tokens at a fixed price and receive stable coins (USDT/USDC) in return. Then, the project owner pair stable coins collected with their project tokens into an LP pair and inject them into an LP pool for IDO. During the IDO process, builders are often bothered by the problem of the poor capital efficiency of liquidity provision for their project tokens. It’s often unclear to project builders at what price range they should provide liquidity or how they should allocate liquidity at different price ranges. They usually don’t have the infrastructure or tools to rebalance their liquidity when their token price fluctuates. All of the above lead to poor capital utilization, suboptimal market making, volatility, and even the collapse of token prices. The MovEX ILO service is a one-stop solution for project owners. MovEX ILO service allows project builders to select a time period, price ranges, and auction algorithms for initial token sales to maximize the fundraising return. The collected stable coins will then be automatically paired with project tokens to form a liquidity pool after the token sale. After that, MovEX’s intelligent liquidity management service will take control and automatically manage the liquidity pool for the project owners. Our liquidity management engine runs an optimizer internally, produces the mathematically proven optimal liquidity allocation under a particular utility function, and automatically adjusts the liquidity for users in a decentralized and non-custodial fashion. We help project creators avoid the hustle of manually adjusting liquidity and boost their capital efficiency and market-making returns. # Hybrid Liquidity DEX ### What is Hybrid Liquidity MovEX combines the best of AMM and order book and delivers the ultimate trading and liquidity provision experience for everyone by creating a hybrid liquidity pool. Internally, MovEX has a settlement engine that distributes orders between AMM and order book, guaranteeing both minimal slippages for traders and fairness for liquidity providers. Retail liquidity providers enjoy the convenience of providing single-sided liquidity at a custom price range and efficiently manage the impermanent loss. Professional traders and liquidity providers enjoy the advanced features provided by the order book. Moreover, traders can also earn commissions if their limit order is filled. This is because limit orders are considered makers and, therefore, can receive commissions like liquidity providers, similar to centralized exchanges. ### Order Types In addition to market orders supported in traditional AMM-based DEX, MovEX also supports advanced orders, including but not limited to limit orders, stop-loss orders, and take-profit orders. ### Order Book We leveraged an on-chain order book that allows users to submit limit orders on MovEX. By submitting a limit order, the user essentially serves as a liquidity provider, and they will earn LP rewards when their orders are filled. ### Concentrated Liquidity AMM The AMM part of MovEX is implemented through a concentrated liquidity way. Unlike traditional constant product AMM, while liquidity is distributed uniformly along the price range between (0, \infinity), the concentrated liquidity AMM allocates liquidity within custom price ranges. With concentrated liquidity AMM, LPs can customize their liquidity to this range, and traders are offered deeper liquidity around this range, and LPs would earn more trading commissions. ### Settlement Engine We leveraged a settlement engine to settle market orders. Consider the following example, the tick size of the order book is 0.1, and the spot price of the token is 100. When it market order arrives, it will first consume the AMM liquidity between 100 and 100.1, then it will consume the order book liquidity at 100.1. Afterward, it will continue consuming the AMM liquidity between 100.1 and 100.2, and then the order book liquidity at 100.2, until the market order is completely filled.
# ILO (Initial Liquidity Offering) ### What is ILO? The MovEX ILO service is a one-stop solution for project owners for fundraising. MovEX offers a customized token sale experience that allows project owners to select time periods, price ranges, and auction algorithms for the initial token sale to maximize the fundraising return. The collected stable coins will then be automatically paired with project tokens to form a liquidity pool after the token sale event. After that, MovEX’s (intelligent liquidity management service)\[[https://app.gitbook.com/s/DJU0eGDYcbh6xVy6JSMh/intelligent-liquidity-allocation](/intelligent-liquidity-management)] will take control and automatically manage the liquidity pool for the project owners. Our liquidity management engine runs an optimizer internally, produces the mathematically proven optimal liquidity allocation under a particular utility function, and automatically adjusts the liquidity for users in a decentralized and non-custodial fashion. We help project builders avoid the hustle of manually adjusting liquidity and boost their capital efficiency and market-making returns. ### Customized Token Sale We allow project owners to customize the following options for a token sale event: * Time period: this is the time period for the token sale event, such as 72 hours. * Price range: this is the price range for the token sale event, such as ($0.1, $0.5). If the left and right bound are the same, then the token sale price is fixed. * Advanced token sale toolkits: Our advanced token sale toolkits offer project owners auction algorithms like Dutch auctions, Buket auctions, and liquidity bootstrap pool (LBP) to further boost the fundraising return and fairness of distribution of tokens. # Intelligent Liquidity Management ### Liquidity Management Liquidity management can be painful. It’s often unclear to LPs what price range they should provide liquidity at and how they should allocate liquidity at different price ranges. This often leads to poor capital utilization, lower fee earning, higher impermanent loss, and eventually, lower or even negative market-making returns. Successful liquidity management requires LPs to predict the future price, withdraw their liquidity, estimate the optimal allocation, and re-inject liquidity at that time. This requires 1) the infrastructure or tools to rebalance their liquidity when the token price fluctuates; 2) extensive statistical knowledge to predict the price distribution and the optimal token allocation strategy. Unfortunately, this knowledge is far beyond the sophistication level of regular project builders. ### MovEX's Intelligent Liquidity Allocation Service MovEX is more than a DEX. We democratize our liquidity management tools for every MovEX user. Our liquidity allocation engine runs an optimizer internally, produces the mathematically proven optimal liquidity allocation under a particular utility function, and automatically adjusts the liquidity for users in a decentralized and non-custodial fashion. We help LPs avoid the hustle of manually adjusting liquidity and boost their capital efficiency and market-making returns ### # Tokenomics ## **Introducing $MOVEX** **What is $MOVEX?** $MOVEX serves as the governance and utility token of MovEX, granting token holders the ability to vote on crucial decisions and enact changes across the entire protocol. These decisions include but are not limited to, * Adjustments to protocol parameters such as swap commission fees, liquidity provision rewards, and token launch fees. * Contract upgrades, which are only executable through governance, are also part of the governance power, ensuring continuous development of the protocol. * Moreover, $MOVEX holders can participate in additional product and cross-chain deployments to expand MovEX's product suite and benefit from value accretive measures such as revenue share of protocol fees. In addition to governance power, the $MOVEX token provides holders with various utilities, * Waiving a certain proportion of trading commissions * Gaining premium access to certain services, such as token launches on the MovEX platform. Our tokenomics are designed with the community in mind, prioritizing $MOVEX holders as the primary beneficiaries of the protocol's growth and aligning incentives among all stakeholders to foster a thriving ecosystem.