During the Sui Foundation's Denver Builder House, MovEX announced the launch of DeepBook on Sui's ecosystem. Let's explore what is DeepBook?
Decentralized finance (DeFi) has taken the world by storm in recent years, with a proliferation of new protocols and platforms that allow anyone with an internet connection to access financial services. However, the DeFi ecosystem can be fragmented, with liquidity spread thinly across multiple platforms. That's where DeepBook comes in. Developed by MovEX for the Sui ecosystem, DeepBook is a decentralized limit order book that provides a one-stop-shop for trading digital assets.
During the Sui Foundation's Denver Builder House, MovEX announced the launch of DeepBook on Sui's ecosystem. Built as a shared decentralized central limit order book (CLOB), DeepBook is designed to leverage Sui's performance and deliver low latency and high execution engine, spreading liquidity across the DeFi ecosystem.
DeepBook is set to launch as an MVP on Sui Testnet Wave 3, allowing developers to build apps that can easily exchange tokens based on an order book model. DeepBook will support both limit and market orders from sellers and buyers, providing an efficient and shared financial layer for trading fungible assets.
With the goal of promoting the advancement of the network and the success of builders, MovEX is releasing DeepBook as a public good. The Sui Foundation will administer DeepBook and release its code as open source for the community.
Alonso de Gortari, Mysten Labs' Head Economist, described DeepBook as "a base layer for everything that happens in DeFi" on Sui. By building DeepBook with a public good model, Sui developers can count on a highly scalable, cost-efficient venue to support on-chain trading.
DeepBook consists of two key components - its core matching engine and its smart order routing engine. The matching engine uses an order book built on a per-asset shared object, while order matching between assets occurs on-chain, and the routing engine processes transactions off-chain.
DeepBook provides a fundamental liquidity layer on the Sui blockchain, allowing builders to easily create DeFi apps. Designed as permissionless and released as open source, DeepBook will accelerate the development of financial and other apps on Sui, giving builders an efficient and shared ready-built financial layer for trading fungible assets.
Builders interested in using DeepBook will be able to access it with their apps during Sui Testnet Wave 3 and experience its full potential when Sui Mainnet launches. Follow DeepBook on Twitter to find out when documentation and access become available.
In conclusion, DeepBook is a game-changer for the DeFi ecosystem, providing a shared decentralized central limit order book that offers efficient and low-cost trading of digital assets. With its launch on Sui's ecosystem, developers will have access to an efficient and shared financial layer for trading fungible assets, accelerating the development of financial and other apps on Sui.
There are several potential DEXs on The Blockchain, not simply Deepbook or MovEX. Therefore, please refer to our list of the Top Decentralized Exchanges on Sui Blockchain for 2023 if you're interested.
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