DeepBook, launched on the Sui platform last year as a native liquidity layer, has served as a launchpad for DeFi protocols. However, its potential extends far beyond current capabilities, including support for perpetual futures, lending, and payments.
Perpetual Futures
Perpetual futures, or perps, are popular among DeFi protocols on Sui as a trading mechanism that allows users to enter contracts to buy or sell assets at a specified future price. Unlike regular futures, perps have no expiration date but require a funding rate. Extending DeepBook to support such contracts would allow users to set the price they are willing to pay, retaining their capital until the contract is executed.
Lending
DeepBook can be engineered to support lending mechanisms on the Sui platform. Existing Sui protocols allow users to offer their assets for lending at an interest rate. Integrating DeepBook would aggregate user assets into a pool available to borrowers across various DeFi protocols. This would simplify access to liquidity and enhance conditions for both lenders and borrowers.
Sui Bridge Integration
The recent launch of Sui Bridge provides a fast and low-cost way to move assets between the Sui and Ethereum blockchains. Integrating DeepBook with Sui Bridge would expand liquidity access for users on other blockchains. This integration would simplify the process of accessing capital across different DeFi platforms, reducing the number of parties needed for asset movements between blockchains.
DeepBook offers powerful capabilities for DeFi protocols on Sui, including trading mechanisms like perps and lending. Integration with Sui Bridge and potential support for cross-chain operations will increase liquidity access and improve conditions for DeFi users. With these new features, DeepBook will continue to advance the DeFi ecosystem on the Sui platform.
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