Sui Foundation today announced the launch of DeepBook, a decentralized exchange (DEX) driven by the community and specifically designed for the Sui ecosystem. As the trading infrastructure for the entire Sui ecosystem, DeepBook will support all financial applications on the network. During the integration of DeepBook into the Sui network, the Sui community members, including MovEX and Mysten Labs, have provided technical support.

As a critical component for the normal operation of the network, DeepBook provides a one-stop solution for digital asset trading on the Sui network. Its technical design is customized to adapt to the unique architecture of Sui. In return, DeepBook will utilize the leading performance of Sui to provide a low-latency and high-efficiency matching engine, offering strong liquidity for the entire Sui DeFi ecosystem. Although adopting the CLOB model, DeepBook also provides more flexible and composable liquidity through the AMM DEX built by the community, providing a comprehensive solution for the Sui ecosystem.

Greg Siourounis, Managing Director of Sui Foundation, said, "DeepBook provides the necessary financial infrastructure support for every DeFi tool built on Sui. Combined with the scalability and composability inherent in the Sui network, DeepBook provides developers with building opportunities that cannot be realized on other networks. We are excited to see the work done by the Sui community in building this platform and look forward to its continued development."

With the support of DeepBook, Sui developers can now directly build applications that seamlessly trade various tokens through an order book supporting limit, market, and other types of orders. DeepBook, which is permissionless and open-source, will provide developers with an efficient and ready-to-use financial layer, accelerating the development of financial and other applications on Sui.

Siourounis also stated, "We support making DeepBook a public good for the Sui ecosystem, promoting the development of the entire network and supporting all developers building on Sui. By combining Sui's unique parallel trading capability with the transparent and scalable on-chain order book of DeepBook, the community has created a trading infrastructure that is transparent, scalable, and usable by all DeFi projects."

From a fundamental perspective, DeepBook provides Sui Network with the functions that traditional centralized exchanges (CEX) can offer. In comparison, CEX acts as an intermediary between buyers and sellers, managing certain regulatory functions and tending to provide higher liquidity. However, as a trade-off for convenience, they also retain control over users' private wallets. Therefore, users may face the risk of losing all their assets in the event of a hack or an unexpected platform closure.

DeepBook, on the other hand, provides a decentralized solution for Sui, allowing users to maintain full control over their assets. Unlike other decentralized networks that find it difficult to achieve central limit order book (CLOB), Sui's extremely low transaction fees, object-oriented processing approach, and parallel trading capabilities enable DeepBook to create a powerful CLOB, empowering participants to manage a large number of limit orders on the platform.

Structurally, DeepBook consists of its core matching engine and its intelligent order routing engines, creating a unique environment for builders of decentralized applications (dApps) and end users based on the following three key elements.

• Transparency: DeepBook's fully on-chain CLOB provides users with complete visibility into order flow and market depth on Sui, enhancing trust and transparency in the trading environment.

• Efficiency: DeepBook utilizes the working mechanism of the Sui network, enabling parallel processing of certain trades and achieving comparable, if not superior, transaction capacity to traditional networks.

• Permissionless: As a completely permissionless DEX, DeepBook allows users to create trading pairs and liquidity pools without restrictions, further supporting the openness and decentralization of the Sui financial system.

Currently, DeepBook has open-sourced its code to the community. In the future, other members of the Sui community are expected to contribute to the further development of DeepBook. As for the usage of this tool, many DeFi protocols have already integrated DeepBook, providing end users with an easy-to-use interface for accessing DeepBook's liquidity. Kriya Exchange is one of them.

The founder and product manager of KriyaDEX, Aditya Dwivedi, stated, "Kriya's ultimate goal is to access all DeFi liquidity on top of Sui through a single window. DeepBook will be one of the deepest liquidity paths in the Sui ecosystem, so its integration is crucial to us. From the beginning of the integration, DeepBook can help us provide advanced features to users, such as fully on-chain limit orders with stop-loss, and in the future, we will also use DeepBook as a matching engine to provide perpetual contract trading services."

In addition to the integration with MovEx and Kriya, the release of DeepBook has also received support from Aftermath, Turbos, and Cetus.

About DeepBook

Official Website: https://sui-deepbook.com/

DeepBook is the first native order book protocol on top of Sui and will be integrated into Sui as the base liquidity layer. MovEx is the initial contributor to DeepBook, which serves as a public resource for all DeFi protocols on top of Sui. Since its launch, DeepBook has provided deep liquidity to all DeFi protocols on Sui with low latency and low cost. DeepBook is completely permissionless, fair, neutral, and open to everyone.

About Sui

Official Website: https://sui.io

Sui is a Layer 1 blockchain and smart contract platform that has no precedent. Starting from the ground up, Sui aims to make ownership of digital assets more accessible, private, secure, and open to everyone. Sui adopts an "object-oriented" processing model, built on the Move programming language, supports parallel execution, and can achieve confirmation within milliseconds, providing a wealth of on-chain assets. With horizontally scalable processing and storage, Sui can support a wide range of applications at an unparalleled speed and low cost. Sui is the evolution of blockchain at the functional level, providing a platform for creators and developers to build user-friendly applications.