DeepBook Expands Sui’s Liquidity Layer with New Use Cases

DeepBook,
a
native
liquidity
layer
launched
on
the
Sui
blockchain
last
year,
is
set
to
revolutionize
decentralized
finance
(DeFi)
with
a
range
of
new
use
cases.
According
to

The
Sui
Blog,
DeepBook’s
capabilities
extend
far
beyond
its
current
applications,
with
potential
features
including
perpetual
futures,
lending,
and
payments.

Enhanced
DeFi
Capabilities

Built
as
a
permissionless
central
limit
order
book,
DeepBook
functions
as
a
neutral
trading
floor
with
built-in
mechanisms
to
enable
DeFi
on
Sui.
Several
DeFi
protocols,
such
as
Cetus,
Aftermath,
Kriya,
FlowX,
and
Hop
Aggregator,
already
utilize
DeepBook
for
their
liquidity
needs,
creating
dynamic
markets
for
users.

Protocols
find
DeepBook’s
features
compelling.
Aftermath,
for
instance,
has
praised
its
transaction
speed
and
reduced
processing
time,
which
enable
a
fully
on-chain
trading
environment
that
rivals
centralized
exchanges
in
liquidity
and
user
experience.

Future
Use
Cases

Currently,
DeepBook
supports
both
market
and
limit
orders.
However,
its
architecture
is
designed
to
accommodate
more
advanced
functionalities.
In
the
near
future,
protocols
using
DeepBook
can
expect
a
wealth
of
new
capabilities.
One
of
the
most
anticipated
features
is
the
integration
of
perpetual
futures
(perps).
Perps
allow
users
to
enter
contracts
to
buy
or
sell
an
asset
at
a
specified
price
without
an
expiration
date,
offering
flexibility
and
capital
efficiency.

In
addition
to
perps,
DeepBook
is
poised
to
support
permissionless
lending
and
borrowing.
Current
lending
protocols
on
Sui
let
users
offer
their
assets
at
an
interest
rate,
but
the
lender
loses
access
to
those
assets
until
the
loan
is
repaid.
DeepBook
could
aggregate
user
assets
into
a
pool,
making
them
available
to
borrowers
through
the
platform,
thereby
increasing
liquidity
and
user
engagement.

Cross-Chain
Integration

The
recent
launch
of
Sui
Bridge,
a
native
bridge
on
Sui,
facilitates
the
quick
and
inexpensive
transfer
of
assets
between
Sui
and
Ethereum
blockchains.
Integrating
Sui
Bridge
with
DeepBook
would
be
a
logical
extension,
allowing
users
to
access
capital
on
another
blockchain
for
use
in
a
Sui
DeFi
protocol.
This
integration
could
streamline
processes
that
currently
involve
multiple
parties,
enhancing
user
experience.

Cross-chain
aggregation
is
another
potential
development.
This
would
enable
DeepBook
to
access
liquidity
pools
on
other
blockchains,
significantly
expanding
the
breadth
of
liquidity
available
to
users.
Aggregators
within
the
Sui
ecosystem
already
use
routers
to
find
the
best
swap
rates
among
various
liquidity
sources,
including
DeepBook,
optimizing
the
trading
experience
for
users.

Fiat
Currency
Payments

One
of
the
most
ambitious
potential
use
cases
for
DeepBook
is
powering
a
payment
platform
dealing
in
fiat
currency.
Although
users
can
make
fiat
currency
payments
over
Sui
through
various
onramps
and
offramps,
integrating
DeepBook
could
streamline
this
process.
A
payments
platform
built
on
DeepBook
would
excel
in
fiat
currency
exchange,
using
SUI
or
a
bespoke
digital
asset
as
an
intermediary
between
different
global
fiat
currencies.

As
a
liquidity
layer
serving
any
DeFi
protocol
on
Sui,
DeepBook
offers
powerful
trading
functionality
akin
to
traditional
financial
markets.
By
integrating
advanced
features
like
perps,
lending,
and
cross-chain
aggregation,
DeepBook
can
provide
even
more
efficient
services,
benefiting
both
protocols
and
end-users.

Note:
This
content
is
for
general
educational
and
informational
purposes
only
and
should
not
be
construed
or
relied
upon
as
an
endorsement
or
recommendation
to
buy,
sell,
or
hold
any
asset,
investment,
or
financial
product
and
does
not
constitute
financial,
legal,
or
tax
advice.

Image
source:
Shutterstock