DeepBook enhances DeFi to support developers on Sui

The Sui Foundation was created to empower and support developers on the Sui network. The platform serves as a channel for official updates and announcements about the Sui network as well as articles on projects that are built on Siu to offer helpful tips. 

The Sui Foundation has opened a brand new chapter with its launch of the first central limit order book, DeepBook, in the decentralized finance (DeFi) space. The platform is the first native decentralized CLOB (central limit order book), built by the existing community of contributors on the Sui platform, where DeepBook will provide stability of the liquidity layer, allowing a new generation of innovative DeFi apps. 

With this launch, builders of DeFi projects will get to use a liquidity layer to leverage the consensus mechanism of the Sui network for the best performance. The open API of DeepBook will allow developers to plug in their apps and benefit from digital asset trading. 

During the launch, multiple crypto exchanges leveraged DeepBook for crypto trading functionality and contributed to the platform’s liquidity – MovEX, Kairon Labs, Cetus, Aftermath Finance, and Turbos. Finance and KriyaDEX helped use and test DeepBook to allow their services. The decentralized CLOB will be powered by Kairon Labs as the platform’s first market maker, followed by other liquidity providers. 

DeepBook will support both market and limit orders from buyers and sellers. It will be released as a permissionless open source that will exist in the form of a Move system, allowing its users to publish liquidity pools and trade between their choice of digital currency pairs. 

Currently, DeepBook is tokenless, and any fee collected by it will get burned. DeepBook will support crypto markets where the sellers will get to list digital assets at a price commonly known as the market price or limit order. Buyers can browse its ledgers to look for the assets that they wish to buy. This model will provide freedom to buy or sell at their chosen prices, thereby supporting the traditional economic concept of demand and supply.

The transparency offered by DeepBook into the permissionless nature supports the decentralization and fairness of the Siu network’s ethos. Users will get to view their order flows, order matching processes, and order book tips. Everyone on the platform will be allowed to buy, sell, and trade on the decentralized exchange without any restriction. 

Coming to the architecture, DeepBook has two main components – smart orders routing engine and a core matching engine. The order matching among virtual assets will take place on-chain, whereas the routing engine will process off-chain. DeepBook will create a schedule to manage order placement, settlement, and cancellation. With this architecture, every transaction involving a different trading pair can be parallelized to optimize throughput.

DeepBook SDK will bootstrap every DeFi builder with a code snippet for crypto swaps, trades, pool queries, and swap routing.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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