TL;DR:
- Official selection: Yuzu has been named the recommended decentralized exchange (DEX) within Movement Network after a Request for Protocol (RFP) process.
- Technical architecture: The protocol utilizes a Concentrated Liquidity Market Maker (CLMM) system to optimize capital efficiency and reduce slippage.
- Implementation date: Starting May 14, 2026, Movement’s incentive programs will be adjusted to prioritize Yuzu as the liquidity center of gravity.
From now on, Yuzu will be the primary decentralized exchange of Movement Network, a decision made after completing a comprehensive competitive review. The designation was made this Thursday, May 14, and they reported that it seeks to consolidate a deep “liquidity anchor” to avoid resource fragmentation within its on-chain ecosystem.
The choice of Yuzu was based on its technical track record. Movement reported that Yuzu’s architecture, based on concentrated liquidity, allows capital providers to focus their assets on specific price ranges. This structure could lead to greater operational efficiency compared to traditional constant product models.
Capital Efficiency and Technical Architecture in Movement
For developers working on Movement, the adoption of Yuzu offers them a standardized liquidity primitive. The network administration indicated that concentrating development resources in one place aims to reduce spreads and improve the execution experience for end users.
A relevant technical aspect is that each liquidity position in Yuzu is represented by an NFT. This allows position ownership, including accrued fees and rewards, to be fully transferable and dynamically manageable. This feature facilitates the creation of secondary markets for liquidity positions within the network.
The Yuzu protocol features a tiered fee structure designed to fit the risk profile of each asset pair:
- 0.01% for pairs with high historical stability.
- 0.05% for highly correlated assets, such as the USDT-USDC pair.
- 0.25% for standard exchange pairs.
- 1.00% for exotic or high-volatility assets.
According to the Movement team, this segmentation seeks to ensure that liquidity providers receive compensation proportional to the risk assumed in the market. At the close of this Thursday’s session, the network began the transition of its incentive programs to reflect this new hierarchy, directing resources toward this operational core.
Integration Perspectives for Developers
Yuzu’s architecture is defined as permissionless at the protocol level, allowing any project to deploy its own pools without centralized intervention. Movement projects that this openness will facilitate new native protocols using Yuzu as their base asset settlement layer.
What differentiates this proposal from other recent ones is that Yuzu was selected for its long-term alignment and its ability to deliver custom technical solutions during the network’s testing phase. The infrastructure has been optimized to take advantage of the high performance and low transaction costs that characterize Movement Network.
