Discover how DeepBook is shaping the liquidity future of Sui's finance ecosystem. Learn how to integrate and contribute to this essential component!
Introduction to DeepBook
To establish a robust financial system, liquidity is vital. In traditional finance, centralized exchanges like the New York Stock Exchange and Nasdaq fulfill this role. In decentralized finance, we have decentralized exchanges in the form of Automated Market Makers (AMMs) or Central Limit Order Books (CLOBs).
AMMs simplify liquidity by employing smart contracts to create pools of assets. The exchange rate is determined by the pool's asset allocation and total value, and trades are executed immediately at the set price. In contrast, CLOBs require a trade execution model where both buy and sell orders must be matched by the system. Sui's on-chain order book, DeepBook, offers complete visibility into the order flow, order book depth, and matching process. As a foundational liquidity layer for Sui, DeepBook plays a vital role in providing a centralized limit order book (CLOB) for efficient trading.
DeepBook forms the public CLOB, serving as the foundational liquidity layer for Sui. Its purpose is to provide liquidity for all builders interested in developing financial products on the Sui platform. Similar to traditional finance exchanges that facilitate capital raising, trading, and market making, DeepBook enables various on-chain finance applications on Sui.
DeepBook was designed as a public good for the Sui community, prioritizing execution and user experience over monetization. It doesn't have an associated token or mandatory requirements for users or applications to access and trade on it.
How You Can Contribute?
DeepBook's codebase, originally developed by MovEX, has been merged into the Sui Network and is open source. The Sui community welcomes contributions to ensure DeepBook's performance and security. Start by integrating DeepBook with your app today and provide valuable feedback and contributions by reporting issues and submitting pull requests on GitHub.
Additionally, community members can participate in the Sui Improvement Proposals process, allowing collective decision-making on DeepBook's future steps.
Liquidity Coming to Sui's Assets
The upcoming weeks of testing mark the beginning of liquidity on Sui. This milestone unlocks Sui's on-chain finance ecosystem, enabling users to create new trading pairs, directly exchange assets, and allow more apps to integrate with DeepBook, leveraging its deep liquidity.
By actively participating in the development of DeepBook, the Sui community paves the way for the full decentralization of the Sui platform.
In conclusion, DeepBook is a vital part of Sui's finance ecosystem, offering liquidity for trading and financial product development. The Sui community encourages app builders to integrate DeepBook and provide feedback to enhance its performance and security. With final testing underway, liquidity on Sui is just around the corner. Join the community in shaping the future of decentralized finance and the full decentralization of Sui now!
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