- Sui Foundation plans to repurpose 117 million SUI tokens ($51.3 million) to bolster its DeFi ecosystem.
- DeepBook, an on-chain CLOB platform, is set to benefit from this fund, enhancing trade routing and matching capabilities.
Elevating The Sui Ecosystem
The Sui Foundation, the pivotal entity behind the development and management of the Sui blockchain, is taking decisive action. Aiming to propel its decentralized finance (DeFi) ecosystem to greater heights, it has announced a $51.3 million fund earmarked for its innovative on-chain central limit order book (CLOB) platform, DeepBook.
Refining The DeFi Space: DeepBook’s Ambition
DeepBook isn’t just another platform; it’s setting its sights high. By mirroring the high-frequency trading capabilities characteristic of giants like Nasdaq and centralized exchanges, it intends to transform the DeFi space. The bedrock of its ambition? The Sui network’s exemplary transaction speed.
The foundation’s spokesperson illuminated Sui’s benefits to Decrypt, pinpointing its “unprecedented low latency and high throughput”. These advantages are derived from Sui’s unique approach: an emphasis on object-centric design, impressive horizontal scalability, and a knack for efficient on-chain storage. To put it into perspective, the network recently registered an astounding 65.8 million transactions within a 24-hour window, outpacing every existing blockchain record.
Greg Siourounis, the Managing Director of the Sui Foundation, stressed that this fund reallocation would invigorate the ecosystem, offering a fresh impetus to developers and other key players.
The Strategic Liquidity Play
Historically, during the mainnet launch of Sui in May, a substantial allocation of around 396 million tokens was earmarked for market makers. This hefty allocation represented a whopping 75% of its initial circulating supply. In a strategic pivot, the foundation now plans to reclaim these tokens. Details of this deal with market makers remain under wraps, but the foundation’s spokesperson highlighted SUI’s consistent liquidity stature on centralized exchanges (CEXes).
While DeepBook remains a focal point, the foundation’s vision doesn’t stop there. A portion of this fund will also nurture other native DeFi applications. This includes automated market makers (AMM) anchored decentralized exchanges, innovative liquid staking, and lending protocols within the network. As of now, according to data from DeFiLlama, Sui ranks 35th among the top blockchains, boasting assets valued at $38.2 million in DeFi protocols.