Hello everyone, I am trader Zhu Yidan. Today I will introduce DeepBook. As the liquidity layer within the Sui ecosystem, DeepBook plays a key role in supporting the Sui DeFi ecosystem by providing stable and efficient trading infrastructure to all builders.
On October 14, the DeepBook V3 version officially launched on the mainnet, along with the release of the DEEP token, marking an important milestone in its development journey. With this upgrade, users and market makers will benefit from finely tuned incentive measures, laying the foundation for greater decentralization through community-driven governance.
It serves as the foundation for DeFi applications to run, providing greater access to assets and enabling efficient trading. With such tools, DeFi builders can focus on developing unique features and incentives rather than dealing with simple trading logic issues and launching independent liquidity pools.
As a complex Central Limit Order Book (CLOB) system, DeepBook enhances the efficiency and liquidity of the overall Sui DeFi ecosystem, enabling traders to execute orders quickly at fair prices while leveraging advanced trading features. This functionality not only attracts more participants but also reduces slippage and enhances overall market stability. Coupled with Sui's high-performance consensus engine, DeepBook offers a trading experience comparable to centralized trading entities.
To prevent manipulation, DeepBook employs a cautious and balanced approach to incentivize liquidity provision. While incentives are offered to encourage active liquidity providers, there is a risk that traders may create artificial volume to earn more rewards. To combat this abuse, DeepBook intentionally sets the order rewards lower than the fees charged when the pool reaches a minimum liquidity threshold. This ensures that incentives are proportional to real trading activity, thereby curbing manipulation.
After a year of operation, DeepBook has brought significant advantages to the Sui DeFi protocol, providing users with an excellent trading experience, including deep liquidity, faster execution speeds, and reduced slippage. Protocols such as Cetus, Aftermath, Kriya, FlowX, and Hop Aggregator have incorporated DeepBook as one of their liquidity sources, creating an active market for DeFi users.
DEEP plays a core role in the Sui DeFi ecosystem, while DeepBook is the pillar of Sui DeFi liquidity. DEEP itself drives the cycle needed to maintain and develop DeepBook, supporting its growth by improving trading efficiency, enhancing liquidity, and governance.
DEEP can be used to pay for transaction and liquidity pool creation fees, with stakers gaining governance rights, while market makers are rewarded for providing liquidity and facilitating trades. As Sui DeFi grows, DEEP plays a crucial role in enhancing liquidity and improving trading efficiency.
The DEEP token is not only a utility tool for DeepBook, but also an important governance tool, playing a significant role in enhancing efficiency and building liquidity across the entire Sui DeFi ecosystem.
From large institutions to individual traders, DEEP provides incentives for all participants to actively engage in the ecosystem. As DeepBook and the Sui DeFi ecosystem continue to evolve, DEEP will keep powering its success, empowering users and shaping the future of Sui DeFi.
