Question 1

How does DeepBook work?

Accepted Answer

DeepBook operates as a fully on-chain central limit order book (CLOB), matching buy/sell orders via price-time priority and pooling fragmented liquidity to enable large trades. It leverages Sui's parallel processing for sub-second settlement (~390ms) and integrates with DeFi protocols for composable liquidity access. All transactions are transparently recorded on-chain, allowing real-time tracking of order flow and market depth.

Question 2

Is DeepBook a secure platform?

Accepted Answer

DeepBook prioritizes security through third-party audits (including Zellic), a bug bounty program, and fully on-chain operations that eliminate custodial risks. Critical vulnerabilities like zero-quantity order exploits were identified and patched during audits. Its codebase is open-source, enabling continuous community scrutiny alongside Sui's native security features.

Question 3

How to use DeepBook?

Accepted Answer

Users interact with DeepBook through integrated DEXs/aggregators or directly via its SDK, placing limit/market orders through Sui-compatible wallets. Developers build on its liquidity layer using Move language smart contracts, documented in official tutorials and GitHub repositories. Advanced features like flash loans require interacting with DeepBook's custodian contracts for atomic transactions.

Question 4

What services does DeepBook offer?

Accepted Answer

DeepBook provides institutional-grade liquidity for spot trading, flash loans for arbitrage strategies, and a composable infrastructure for developers to build DeFi applications. It supports high-frequency trading with ultra-low fees and deep liquidity pools, minimizing slippage for large orders. The protocol also enables governance participation through its DEEP token, which reduces trading fees when used for transactions.