Sui's innovative app primitives pave the way for impactful user experiences in DeFi applications. Each primitive, from facilitating efficient liquidity sharing to streamlining user interactions, plays a crucial role in shaping Sui DeFi.

Examining the core functionalities of these primitives individually highlights their significant impact on DeFi apps. However, when considered collectively, their unique ability to enhance user engagement and experience within the Sui DeFi landscape becomes even more pronounced.

DeepBook

DeepBook, an integral element of Sui DeFi, is a protocol designed for efficient liquidity sharing across multiple apps. Operating as a central limit order book, DeepBook systematically records bids and asks in chronological order, autonomously identifying matches between the two sides for smooth trading execution. Harnessing Sui's high-performance capabilities, apps can leverage DeepBook to execute trades with low latency and high throughput. As a native protocol within the Sui ecosystem, DeepBook seamlessly grants DeFi applications access to substantial liquidity, effortlessly accommodating market and limit orders through simple integration.

DeepBook efficiently stores unfilled maker orders in pools, removing them upon successful matching with corresponding orders. DeepBook enables the creation of pools for any asset pair in a permissionless manner. As the first native liquidity layer on Sui, it leverages the robust networking layer and distinctive data model of Sui, thereby streamlining the development of DeFi applications within the Sui ecosystem.

zkLogin

zkLogin serves as a solution to the onboarding challenges faced by new users exploring blockchain applications. The absence of a streamlined login process often creates barriers for users new to blockchain apps, leading to substantial onboarding drop-off. In contrast, zkLogin simplifies this process by enabling users to securely create accounts and conduct transactions using their existing Web2 login credentials.

zkLogin provides developers with flexibility, enabling the offering of invisible wallets that abstract user interactions with the blockchain or a simpler pathway for users to access their onchain assets. It seamlessly integrates with existing account types, such as mnemonic and hardware wallets, catering to both novices and experts based on their preferences. This versatility enhances the accessibility and user-friendly nature of DeFi apps within the Sui ecosystem.

As an integral part of Sui, zkLogin empowers application builders to provide optimal user experiences, catering to individuals who prefer the convenience of utilizing Web2 logins. zkLogin enhances accessibility and usability, fostering a more inclusive environment for users engaging with DeFi apps within the Sui ecosystem.

Sponsored transactions

Sui addresses the challenges surrounding blockchain gas fees by introducing sponsored transactions. Requiring that new users pay fees in the coin native to the underlying blockchain creates unnecessary user friction. For those not familiar with blockchain apps, they may be immediately turned away by this. 

Sponsored transactions eliminates onboarding friction associated with gas fees, allowing apps to subsidize specific user transactions and abstract gas fees away from the end-user experience. Sponsored transactions on Sui offer granular control over gas fee subsidization, providing unique incentives for app developers to enhance user engagement and reduce friction for those new to blockchain. Although placing the onus of gas fees on an app rather than the user may seem an unlikely business model, it gives builders a flexibility in determining the revenue model that works best for them.

Programmable Transaction Blocks

Programmable Transaction Blocks (PTBs) are a Sui primitive that offer unique possibilities in composability and greatly simplify blockchain interactions for end users. Instead of requiring multiple transactions to be submitted for a simple action, PTBs enable bundling, signing, and submitting a complex series of transactions in one unified process. Each command executes sequentially, allowing results from one to be utilized in subsequent commands, ensuring a cohesive and atomic process where the entire block fails if one command fails. 

PTBs markedly enhance the experience for both app developers and end-users, simplifying and consolidating intricate transactions. This capability allows for the creation and execution of unique DeFi strategies involving multiple applications and interactions within a single transaction block. As a potent tool, PTBs contribute to a seamless and user-friendly blockchain experience, providing a streamlined approach for simplifying interactions in Sui’s DeFi ecosystem.

Kiosk

Sui's Kiosk primitive empowers users to retain full control over their assets even when listed for sale. When selling items like NFTs, users often have to relinquish certain ownership-related abilities. For instance, an NFT owner may want to maintain access to features associated with ownership even while it is listed for sale. Kiosk not only facilitates the transfer of digital asset ownership but also enables creators to define specific policies for the asset type. This includes custom trading functionalities like auctions, providing a versatile solution for users seeking to interact with and trade their assets seamlessly.

In essence, Kiosk serves as a straightforward yet highly customizable tool for constructing and engaging with commerce applications on the blockchain. Functioning like a real-world kiosk with a single owner and a designated space for various items, Kiosk simplifies the process of trading unique assets. Whether for individuals or large markets, Kioski offers an all-in-one solution, eliminating the need for additional layers or third-party services commonly required on the traditional web and some other blockchains.

Making DeFi better

Exploring Sui's app primitives reveals how DeFi applications on Sui can deliver powerful user experiences. Apps can leverage DeepBook for instant access to deep liquidity and various trading functions. zkLogin and sponsored transactions eliminate significant blockchain adoption barriers, such as wallets and gas fees. PTBs offer robust composability while simplifying user interactions. Lastly, Kiosk provides a unique approach to trading digital assets with powerful auxiliary capabilities.

Sui development is driven by the vision of providing the best experience for both end-users and developers. Core Sui developments focus on empowering app builders through Sui primitives, crucial for realizing this vision. Keep an eye out for upcoming improvements and new Sui primitives throughout the year. It’s an exciting time for Sui builders!