Sui’s first native central limit order book-based decentralized exchange promises seamless transactions for Sui-based applications.
Sui Foundation announced the launch of DeepBook, a community-owned decentralized central limit order book (CLOB) built for the Sui ecosystem as foundational infrastructure to support the entire universe of financial applications on the network. Sui community members including MovEX and Mysten Labs helped with the technical aspects of DeepBook required for integration into the network.
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“Combining Sui’s unique capacity for parallelized transactions with a public on-chain order book allowed the community to create a trading facility that is uniquely transparent, scalable and usable by every DeFi project on the network.”
Essential to the proper functioning of the network, DeepBook provides a one-stop shop for trading digital assets on Sui with a technical design that is specifically tailored to Sui’s unique architecture. DeepBook, in turn, leverages Sui’s industry-leading performance to deliver a low latency and high execution engine to supply robust liquidity to the entire Sui DeFi ecosystem. Structured as a central limit order book, DeepBook also extends the flexible, composable liquidity of community-built AMMs, providing the best of both worlds for the Sui ecosystem.
“DeepBook provides the essential financial foundation for every DeFi tool built on Sui. Combined with the scalability and composability built into the Sui Network, DeepBook offers developers the chance to build applications that are simply not possible on other networks,” said Greg Siourounis, Managing Director of the Sui Foundation. “We applaud the work of the Sui community in building this exceptional platform and look forward to seeing its continued development.”
Empowered by DeepBook, developers on Sui can now build apps that exchange tokens seamlessly via an order book which supports limit, market, and a variety of other order types. Permissionless and open source, DeepBook will accelerate development of financial and other apps on Sui by providing builders an efficient, ready-built financial layer for trading digital assets.
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“We support the creation of DeepBook as a public good for the Sui ecosystem to advance the network and support all of the developers building on Sui,” said Siourounis. “Combining Sui’s unique capacity for parallelized transactions with a public on-chain order book allowed the community to create a trading facility that is uniquely transparent, scalable and usable by every DeFi project on the network.”
At a basic level, DeepBook makes many of the benefits offered by traditional centralized exchanges available in Sui’s decentralized network. For comparison, centralized crypto exchanges act as intermediaries between buyers and sellers, manage certain regulatory functions and tend to offer high levels of liquidity. However, in exchange for the convenience they offer, they also retain control over users’ private crypto wallet keys. As a result, in the event of a hack or a shutdown, these users could face the loss of their entire holdings.
Sui’s DeepBook offers a decentralized solution that keeps users in full control of their assets. Unlike other decentralized networks where CLOBs are difficult if not impossible to implement, Sui’s extremely low blockchain transaction fees, based on its object-oriented approach and parallelized transactions, enable DeepBook to create a robust CLOB by making it economical for market participants to manage large numbers of limit orders on the platform.
Structurally, DeepBook consists of its core matching engine and its smart order routing engine, which create an environment uniquely supportive of decentralized application builders and end users based on three key elements:
- Transparency. DeepBook’s fully on-chain central limit order book provides users with complete visibility of the order flow and depth of markets on Sui, promoting trust and transparency in the trading environment.
- Efficiency. DeepBook takes advantage of the underlying mechanics of the Sui Network which allows for parallelizing certain transactions, in a platform with transaction capacity that rivals and even surpasses that of traditional networks.
- Permissionless participation. As a fully permissionless DEX, DeepBook allows users to create token pairs and trading pools without restrictions, fostering a more open and decentralized financial system on Sui.
DeepBook has released its code as open source for the community. In the future, others in the Sui community are expected to contribute to further development of this essential network utility. As for utilization of the tool, a number of DeFi protocols have already integrated DeepBook to provide an easy-to-use interface for end users to access its liquidity. Kriya Exchange is one project leveraging DeepBook in its offerings.
“Our ultimate goal at Kriya is to provide access to Sui DeFi liquidity in one place. DeepBook will be one of the deepest liquidity avenues in the ecosystem, so integrating it in our router was paramount,” said Aditya Dwivedi, Founder and Product Lead at KriyaDEX. “From the start, DeepBook allows us to provide users with advanced features like stop-limit orders that are completely on-chain from intent to settlement. In the future, we will use DeepBook as the matching engine to allow trading of leveraged perpetual futures.”
Along with the MovEx and Kriya integrations, DeepBook’s launch was supported by routing UX partners Aftermath and Turbos and the Sui-based DEX, Cetus.
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