DeepBook is a Central Limit Order Book (CLOB) protocol operating on the Sui network, enabling decentralized applications (dApps) to integrate and utilize the CLOB model. DeepBook aims to become the central liquidity hub for the Sui network, facilitating low-slippage and cost-effective trading for users within the ecosystem.
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Currently, numerous decentralized exchanges (DEXs) on Sui, including Cetus and Aftermath Finance, have successfully implemented the DeepBook protocol.
DeepBook’s Operational Model
Understanding the mechanics of a CLOB is crucial to grasping DeepBook’s model. A CLOB aggregates buy and sell orders from participants, organizing them by price within a unified order book. The highest buy order is matched with the lowest sell order, ensuring efficient price discovery. This model is widely adopted by centralized exchanges (CEXs) like Binance and OKX.
Compared to the Automated Market Maker (AMM) model, CLOB offers reduced trading fees and slippage. However, CLOB requires high liquidity and a substantial volume of orders to function optimally. Insufficient liquidity can result in significant slippage and increased price volatility.
To address this challenge, DeepBook acts as a liquidity layer, connecting trades and liquidity across various DEXs on the Sui network. DeepBook currently offers two versions:
- DeepBook V2: The current iteration allows DEXs to implement limit orders, enabling users to purchase tokens at their desired price.
- DeepBook V3: This version introduces flash loans and the DEEP token. Staking DEEP offers discounted fees on integrated DEXs and a share of trading fee revenue. V3 also aims for decentralization, allowing DEEP holders to participate in governance and propose project developments.
Understanding the DEEP Token
DEEP Token Key Metrics
- Token Name: DeepBook
- Ticker: DEEP
- Blockchain: Sui
- Contract: 0xdeeb7a4662eec9f2f3def03fb937a663dddaa2e215b8078a284d026b7946c270::deep::DEEP
- Token Type: Utility, Governance
- Total Supply: 10,000,000,000 DEEP
DEEP Token Allocation
- Community: 61.6%
- Investors: 10.9%
- Mysten Labs: 10%
- Initial Airdrop: 10%
- Early Contributors: 7.5%
DEEP Token Vesting Schedule
- Community: 22.5% at Token Generation Event (TGE), with the remainder released daily at 0.03%.
- Investors: 1-year lock-up, followed by a 33.3% initial unlock and the remainder released daily at 0.09%.
- Mysten Labs: 10% at TGE, with the remainder released daily at 0.06%.
- Initial Airdrop: 100% at TGE.
- Early Contributors: 1-year lock-up, followed by a 33.3% initial unlock and the remainder released daily at 0.09%.
DeepBook’s Team, Investors, and Partners
The Team
DeepBook is developed by Mysten Labs, the creators of the Sui network. Key team members include:
- Evan Cheng: Co-Founder and CEO of Mysten Labs, formerly an engineer at Apple and Meta.
- Sam Blackshear: Co-Founder and CTO of Mysten Labs, with prior experience at Meta and Microsoft.
Investors and Partners
On October 12, 2024, DeepBook conducted an Initial Exchange Offering (IEO) on Gate.io, selling 6,000,000 DEEP for $30,000 (equivalent to $0.005 per DEEP).
DeepBook’s strategic partners primarily consist of projects within the Sui ecosystem, such as FlowX, Cetus, and Turbos Finance.
Similar Projects
Comparable projects include:
- Serum: A Solana-based DEX utilizing an order book mechanism for high liquidity and low fees.
- Vertex Protocol: A decentralized derivatives exchange on Arbitrum, sharing liquidity with Blitz on the Blast network.
