🧵 1/ Why is liquidity fragmented on Solana? You’ve got Orca, Phoenix, Raydium, OpenBook, Meteora... All offering SOL/USDC — but liquidity is scattered. Execution is shallow. Slippage is high. Let’s unpack what’s going on — and how Fusion AMM might change everything. 🧩👇

2/ Fragmentation = liquidity spread across disconnected pools. Each DEX runs isolated markets. AMMs don’t see order books. Raydium doesn’t see Meteora. Limit orders don’t touch swaps.

3/ The technical causes: 🔹 Each protocol = its own smart contract 🔹 AMMs & Order Books don’t speak the same language 🔹 Serum’s collapse splintered CLOB liquidity 🔹 AMMs are easy to launch → explosion of pools 🔹 Solana tx size/compute limits complex routing

4/ Real example: Meteora. Meteora launched a Dynamic Liquidity AMM (DLMM) — cool tech, but... 💥 It spawned hundreds of tiny, isolated pools 💥 Each LP is fragmented across price bins 💥 Traders often hit thin liquidity → slippage It solved efficiency, but worsened fragmentation.

5/ Result? – Traders bounce across venues chasing prices – LPs split capital across too many pools – Aggregators like Jupiter work overtime to patch it all – Arbitrage dominates, LPs bleed, UX suffers

6/ Now enter @FusionAMM by DeFiTuna 🐟 Not just another pool. Fusion is a hybrid DEX with: ✅ AMM pricing ✅ Real on-chain limit orders ✅ Unified liquidity ✅ Crankless execution ✅ One deep pool per pair

7/ Why Fusion could fix fragmentation: 🧩 Both swaps & orders live in 1 protocol 🧩 LPs & traders meet in the same system 🧩 No more scattered bins (like Meteora) 🧩 No reliance on external order books 🧩 No separate cranks or keepers

8/ Traders get: 🔹 Less slippage 🔹 True on-chain limit orders 🔹 Unified depth 🔹 One venue to rule them all LPs get: 🔹 More concentrated volume 🔹 Lower IL risk 🔹 No more chasing dozens of pool configs

9/ TL;DR Solana’s fragmentation problem isn’t about lack of volume — it’s a protocol design issue. Fusion AMM addresses it at the root, not with another aggregator, but with a better market structure.

10/ Final thought: There has been a lot of innovation over the years. Fusion will bring unification. If it succeeds, we won’t need 20 venues for one asset. We’ll have one deep, smart, fast pool — built for Solana. #Solana #FusionAMM #DeFi #Meteora #Crypto #DEXDesign

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