DeepBook Enhances DeFi Protocols with Superior Liquidity and Speed

DeFi
protocols
are
increasingly
highlighting
the
advantages
of
using
DeepBook,
an
open-source
central
limit
order
book
(CLOB)
that
offers
deep
liquidity,
quick
execution,
and
ease
of
integration.
According
to

The
Sui
Blog,
protocols
such
as
Kriya,
FlowX,
and
Hop
Aggregator
have
integrated
DeepBook
to
enhance
their
trading
platforms.

DeepBook’s
Technical
Benefits

After
a
year
in
operation,
DeepBook
has
significantly
benefited
Sui
DeFi
protocols
by
offering
deep
liquidity,
faster
execution,
and
reduced
slippage.
Its
open-source
smart
contracts
allow
for
seamless
integration,
ensuring
transparency
and
flexibility.
DeepBook
supports
both
market
and
limit
orders,
providing
traders
with
a
range
of
options.

Aditya
Dwivedi,
co-founder
of
Kriya,
noted, “We
were
the
first
to
provide
limit
orders
natively
in
our
web
app
via
DeepBook.
It
integrated
seamlessly
as
a
liquidity
source
in
our
swap
router,
further
reducing
slippage
for
traders.”

Sui
Network
Advantages

DeepBook
leverages
the
Sui
network’s
fast
transaction
processing
and





scalability.
Sui’s
consensus
engine
allows
single-owner
transactions
to
bypass
traditional
consensus,
enhancing
performance.
This
architecture
supports
scaling,
enabling
network
infrastructure
supporters
to
add
resources
as
traffic
increases.

DeFi
activities
using
DeepBook
achieve
settlement
in
about
500
milliseconds
with
sub-second
finality,
maintaining
consistent
and
lower
gas
fees
compared
to
other
blockchains.
The
upcoming
Mysticeti
upgrade
to
Sui’s
consensus
engine
is
expected
to
further
enhance
DeepBook’s
performance.

User
Experience
and
Cost
Efficiency

Neville
Nguyen,
CEO
of
FlowX
Finance,
stated, “On
FlowX,
we’ve
seen
how
well
DeepBook
performs
in
trades
involving
primary
pairs
like
SUI-USDC
and
USDC-USDT.
In
most
cases,
our
aggregator
routes
some
swap
volume
through
DeepBook.”

DeepBook’s
ability
to
parallelize
trading
pairs
increases
transaction
speed
and
settlement
times,
directly
benefiting
user
experience.
Additionally,
its
low
gas
fees
and
efficient
trading
rates
save
DeFi
users
money.

Bonkman,
Founder
of
Hop
Aggregator,
highlighted, “Our
goal
at
Hop
is
to
provide
customers
with
the
best
rates
for
all
Sui
assets.
Leveraging
DeepBook
supports
this
goal
because
it
often
has
the
best
rates,
especially
during
times
of
market
volatility.”

Future
Developments

DeepBook’s
sophisticated
architecture
allows
for
various
trading
activities,
including
limit
orders
and
perpetual
derivatives
(perps).
This
flexibility
makes
it
popular
among
protocols
exploring
new
offerings.
Kriya
Perps,
for
example,
combines
private
DeepBook
pools
with
a
proprietary
margin
engine
to
offer
users
centralized
exchange-like
latency
and
decentralized
exchange-like
transparency.

Protocols
interested
in
using
DeepBook
can
refer
to
its

documentation.
As
an
open-source
liquidity
layer,
it
is
permissionless,
allowing
for
community-driven
updates
and
improvements
through
the
Sui
Improvement
Proposals
(SIPs)
program.

DeepBook’s
audited
contracts
provide
a
security
advantage
for
protocols,
reducing
the
burden
of
implementing
robust
security
measures.
This
foundational
liquidity
layer
supports
DeFi
protocols
by
offering
a
publicly
accessible
trading
pool
and
enabling
sophisticated
trading
strategies.

Looking
ahead,
DeepBook
plans
to
launch
its
own





token,
DEEP,
to
involve
both
institutional
and
retail
traders
in
governance.
With
ongoing
development
and
new
features,
DeepBook
aims
to
maintain
its
position
at
the
forefront
of
liquidity
solutions
in
the
DeFi
space.

Image
source:
Shutterstock