DeepBook Empowers Institutions with Liquidity Token Launch

DeepBook Empowers Institutions with Liquidity Token Launch
DeepBook Empowers Institutions with Liquidity Token Launch

DeepBook Unveils Token Launch Plan for Institutional Liquidity

DeepBook, Sui's native liquidity layer, announces the launch of its DEEP token, solidifying its role as the network's central financial infrastructure. DEEP targets institutions and institutional traders who utilize DeepBook to provide wholesale liquidity in DeFi.

The DEEP token offers key features such as maker incentives and volume-based fees. Users must stake a certain amount of DEEP in DeepBook pools to access these functionalities. By staking, users also participate in pool governance.

DeepBook's pools leverage a fully on-chain central limit order book architecture, catering to professional traders and DeFi protocols. Users can place limit orders alongside market token orders, enabling complex trading capabilities. DeepBook provides a robust framework for DeFi, facilitating liquidity and fostering innovation.

Features Designed for Institutional Liquidity

The DEEP token design encourages collaboration among DeepBook's participants, ensuring consistent 24/7 liquidity. Features include:

  • Volume-based Fees: Traders pay varying fees based on their activity in the trading pool. This favors institutional traders, DeFi protocols, and other active participants with lower marginal fees.

  • Maker Incentives: Liquidity providers (makers) receive additional incentives in DEEP tokens, enhancing overall liquidity depth.

  • Stake-based Participation: To access discounted fees and maker incentives, traders must stake a minimum amount of DEEP tokens. This further positions DeepBook as a hub for wholesale liquidity.

Stake-based Governance

Pool governance is managed by stakeholders, who set parameters for fees and maker incentives. Governance rights increase with stake weight.

  • Reduced Governance Capture: Parameters are restricted to prevent governance capture. Traders cannot vote for lower fees that benefit specific users.

  • Declining Governance Rights: Staking quantities above certain thresholds result in declining governance rights, ensuring smaller traders have a voice in the system.

By addressing the needs of institutional users, DeepBook aims to strengthen the fundamental liquidity of DeFi protocols and provide a robust foundation for financial product innovation.

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