MAGMA (MAGMA) is the fungible utility token used within the Magma Finance protocol on the Sui blockchain. It operates within a liquidity protocol built around an Adaptive Liquidity Market Maker (ALMM), where liquidity is placed into discrete price “bins” and trading fees can adjust dynamically.

The protocol also includes an “AI Strategy Layer” intended to automate rebalancing and optimisation of liquidity positions, with the goal of keeping supplied capital actively deployed rather than sitting idle.

Governance: MAGMA is used for proposing and voting on changes to the protocol such as upgrades, feature additions and parameter updates.

Liquidity incentives: MAGMA is used to reward liquidity providers who supply assets to the protocol’s market-making pools, with rewards linked to contribution.

Loyalty and access: MAGMA is used for tiered participation, where holdings and activity can be used to determine access to selected products or services and their associated terms.