Research Report | DeepBook Project Overview & DEEP Market Cap Analysis

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西格玛学长2025/04/25 07:45

By:西格玛学长

I. Project Introduction

DeepBook is the first native Central Limit Order Book (CLOB) protocol on the Sui network, serving as the liquidity foundation for the entire Sui DeFi ecosystem, officially supported and community co-built. As a fully open-source shared order book on-chain, DeepBook offers developers a plug-and-play trading engine, supporting various order types like limit, market, and stop orders, effectively breaking the liquidity fragmentation dilemma under the traditional AMM model.

Research Report | DeepBook Project Overview & DEEP Market Cap Analysis image 0

The project builds independent shared pools for each trading pair based on Sui’s parallel execution features and object-oriented model, ensuring efficient matching and minimal delay execution between different assets. With extremely low gas costs and excellent throughput, DeepBook provides a trading experience close to CEX, making on-chain CLOB a reality.

Currently, DeepBook has been integrated into several core DeFi projects like Aftermath, Kriya, Turbos, Cetus, and others as a shared liquidity engine providing limit order matching capability. The Sui Foundation also positions it as the ecosystem's "public financial infrastructure," considered the trading hub for all DeFi projects on Sui.

The platform token $DEEP is used to incentivize real order placers, reduce trading costs, and participate in protocol governance. DEEP can be staked in specific liquidity pools to earn order placement rewards, and it dynamically adjusts trader fee levels based on trading volume. Additionally, DeepBook has designed anti-wash trading and penalty burning mechanisms to ensure the incentive mechanism truly serves effective trading.

II. Project Highlights

1. Endorsed by Sui, the sole shared order book foundation in the ecosystem DeepBook is not an ordinary DeFi protocol but is launched by the Sui Foundation as the only officially designated on-chain order book infrastructure. Since its launch, DeepBook has been deeply integrated into star protocols such as Kriya, Cetus, Turbos, Aftermath, and has become the default liquidity entry point for various trading applications on the Sui network, truly realizing the positioning of "public chain-level shared foundation."

2. On-chain matching close to CEX, supporting all order types Based on Sui’s unique parallel processing architecture and object-oriented asset model, DeepBook achieves extremely low latency on-chain matching (average matching time <390ms), supporting professional trading instructions such as limit, market, and stop orders. This effectively brings the centralized trading experience on-chain. The transparent order depth and on-chain execution path further ensure fairness, attracting a large number of high-frequency users.

3. True and visible trading data, strong support for builders’ confidence As of now, DeepBook has processed over $8.7 billion in total trading volume, serving over 10 million addresses, with a 24-hour trading volume reaching $31 million, making it one of the most active trading infrastructures on the Sui chain. Additionally, the platform has burned over 7.1 million $DEEP through fees, effectively promoting real trading behavior and releasing token value.

4. Modular integration + highly composable, lowering development threshold DeepBook provides ready-to-use API interfaces, shared order book standards, and smart routing tools, allowing any DeFi protocol to integrate CLOB functionality at very low development costs. Developers can build AMM + CLOB hybrid models, limit order pools, on-chain derivative trading systems, and more, rapidly advancing the trading experience of the Sui ecosystem.

III. Market Cap Expectations

As the first native order book protocol within the Sui ecosystem, DeepBook undertakes the role of the underlying infrastructure for network trading liquidity and achieves deep integration with multiple mainstream DEX protocols, making it an indispensable public trading engine on Sui. The current circulating market cap of $DEEP is approximately $490 million. Although the initial trading enthusiasm was strong, there remains a significant valuation gap compared to other mature DEX protocols.

From a horizontal comparison, whether it is the order book hybrid protocol Raydium (RAY) on Solana, PancakeSwap (CAKE) on BSC, or Uniswap (UNI) on Ethereum, all have established stable valuation ranges between $600 million and $3 billion after stabilizing operations on the mainnet. Raydium follows a similar on-chain order book structure, while CAKE and UNI lean more towards the AMM model, but both have successfully achieved high-frequency matching and extensive trading demand coverage.

Combining DeepBook's current accumulated trading volume of $870 million, daily active trading volume of over $30 million, and the actual data of burning over 7 million $DEEP, if subsequent developments lead to user growth and derivative trading expansion within the Sui ecosystem, there is a sufficient basis for entering a mid-term valuation range of $700 million to $1 billion.

Research Report | DeepBook Project Overview & DEEP Market Cap Analysis image 1

IV. Economic Model

Total Supply of $DEEP: 10,000,000,000 tokens; Currently Circulating: 29.58%

Token Allocation:

- Community Incentives: 61.57%

Used for the long-term development of the DeepBook ecosystem, including developer grants, community programs, and protocol expansion. An initial unlock of 14%, with the rest released over seven years.

- Initial Airdrop: 10%

Fully released at TGE (Token Generation Event), rewarding early users, community contributors, and key members supporting DeepBook's construction, with significant incentive effects.

- Investors: 10.93%

Allocated to strategic investors supporting DeepBook’s early development, with a one-year cliff and linear release over 24 months thereafter.

- Mysten Labs: 10.00%

Allocated to core development support teams for DeepBook’s infrastructure and security R&D. Unlocks 1% at TGE, with the remaining portions released linearly over four years.

- Early Contributors: 7.50%

Allocated to technical contributors and ecosystem supporters who advanced the initial development of DeepBook’s products and protocol.

Token Utility:

1. Governance and Decision-Making Users holding and staking $DEEP can participate in deciding key parameters of the governance staking pool, including fees, incentive conditions, etc., possessing real governance rights. Voting power is calculated proportionally with a non-linear mechanism to ensure even small holders can have a voice.

2. Fee Payment and Discounts Use $DEEP to pay transaction fees on DeepBook, with more active trading yielding higher fee discounts. Also, orders providing liquidity to the market receive fee rebates.

3. Staking and Order Incentives Users can stake $DEEP into specific trading pools for lower order-taking fees and the opportunity to receive order placement rewards. The system dynamically detects wash trading behavior to prevent misuse of incentives for non-genuine trades.

4. Positive Loop in Platform Ecosystem $DEEP acts as the fuel for DeepBook operations, linking protocol governance, fee flow, and user incentives, becoming a critical component in promoting DeepBook as the core infrastructure of Sui DeFi.

V. Team & Financing

Team Information:

The project is driven by "community co-building + foundation support," initially initiated by the MovEx team and funded by the Sui Foundation, serving as a fundamental infrastructure project within the Sui ecosystem. It has not undergone traditional VC financing but is developed under the auspices of Sui and gradually open to community governance.

As for contributors, currently announced key contributors of DeepBook include:

Aslan Tashtanov – Technical Contributor;

Manolis Liolios – Technical Contributor;

Tony Lee – Project Contributor;

Although the team maintains a low profile overall, their strong technical capability and ecosystem coordination resources are evident from their open-source progress and rapid integration with multiple ecosystem protocols, especially in implementing high-performance on-chain matching systems.

Regarding Financing:

As of now, DeepBook has not disclosed any financing records from traditional venture capital institutions. This is closely related to its project positioning—as a foundational financial facility driven by the Sui Foundation to provide shared liquidity support for the entire network, DeepBook is more akin to a "public chain-level public good" rather than a typical commercial entrepreneurial project.

VI. Potential Risks Warning

1. Compared to the AMM model, CLOB has higher technical barriers in development and integration (such as trading routing, matching logic, state management, etc.), which may lead some lightweight DeFi projects to bypass DeepBook and instead build their liquidity or adopt AMM collaboration solutions, affecting its penetration as a "universal liquidity layer."

2. DeepBook is Sui's native order book protocol, with nearly all product designs and performance advantages relying on Sui's parallel transaction and object model features. If the growth of Sui mainnet stalls, developers leave, or TVL stagnates, DeepBook's development momentum will be similarly constrained, and lacking cross-chain or multi-chain expansion capabilities could become a long-term bottleneck.

VII. Official Links

Official Website: https://deepbook.tech/

Twitter: https://x.com/DeepBookonSui

Discord: https://discord.com/invite/deepbook

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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