DeepBook's newest incarnation, version 3, substantially lowers gas fees, introduces dynamic trading fees, and adds capital efficient order management for market makers. These new features represent just a few of DeepBook's improvements. One of its biggest developments centers around the previously announced DEEP token, which creates a new governance model for this native liquidity layer.
Launched in July, 2023, DeepBook was quickly adopted by DeFi protocols on Sui letting them tap into common liquidity pools and facilitating swaps across the network. Ongoing development delivered performance improvements to better support the quickly growing DeFi activity on Sui.
With DeepBook version 3, DeFi protocols will find substantial improvements, letting them explore new mechanisms and give their users more efficient and flexible DeFi options.
- Reduced transaction costs
Efficiency improvements in DeepBook make transaction costs 60 percent less than with the previous version.
- New orders interface
With its new swap-like interface, DeepBook makes it easier for DeFi protocols to integrate it.
- Flash loans
Support for instant, zero-collateral borrowing facilitates arbitrage, liquidity provision, and risk management, all within DeepBook's highly performant environment.
- Dynamic fees
Through its new governance model and token, DeepBook stakers can propose changes to taker and maker fees, with votes held at every epoch.
- Shared liquidity across pools
Market makers can share capital between pools, reducing the risk of maintaining deep liquidity.
Token utility
As a major milestone in its development, DeepBook will include its own token, DEEP. This token will incentivize DeepBook's many diverse participants to work together in offering ample and around-the-clock liquidity. Along with an initial airdrop, market makers will earn rebates in DEEP.
DEEP stakers will be able to participate in individual pool governance. Those with a stake in a pool will be able to vote on its trading fees. Although the quantity of stake will help determine the weight of each entity's vote, the governance structure includes a mechanism to keep any one entity from exercising outsize power.
Testnet to Mainnet
This new version of DeepBook deployed to Sui Testnet on August 21, 2024 with a planned two week run before Mainnet launch. Users can help test the new version by providing feedback and by clicking any of the following partner links:
Follow DeepBook on Twitter for upcoming test links from Aftermath and Cetus.
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.
