DeepBook Margin officially launched, Sui DeFi upgraded from a liquidity engine to a complete infrastructure

DeepBook Margin has officially launched, introducing fully on-chain and composable leverage trading functionality to Sui. This launch marks a key upgrade in the Sui DeFi ecosystem, evolving from a simple liquidity provider role to a foundational infrastructure platform with complete financial primitives. According to the latest news, developers can embed leverage trading directly into DApps via SDK and API, while asset holders can earn passive income by providing liquidity to leverage trading pools.

The Two Layers of On-Chain Native Leverage Trading Value

Developer Side: Reduce development costs, accelerate ecosystem applications

The core innovation of DeepBook Margin lies in its fully on-chain design. Developers no longer need to build risk engines or seek liquidity; they can directly embed leverage trading capabilities into their applications through SDK and API. What does this mean? Previously, for a DApp to implement leverage trading, it had to handle complex issues like risk management, liquidation logic, and liquidity matching on its own. Now, all these are standardized by DeepBook, allowing developers to focus on product experience and differentiation.

LP Side: First-time participation in leverage trading pools, earn on-chain interest

This update opens up a new way for users to participate on the LP side. Asset holders can stake assets (such as dbUSDe) into leverage trading pools to earn passive income from trading activities. This expands the ways liquidity providers can participate in the Sui ecosystem and aligns with trends like Cetus integrating DeepBook.

Why This Matters: Completing Sui DeFi Infrastructure

From a technical architecture perspective, DeepBook Margin adopts an isolated risk design—each market’s leverage trading is handled independently, with collateral, borrowing, and liquidation managed separately. This prevents risk transmission across markets. This design philosophy aligns naturally with Sui’s object model and reflects mature thinking in the ecosystem’s infrastructure development.

More profoundly, Sui DeFi is evolving from a “liquidity engine” to a “comprehensive financial infrastructure.” DeepBook already has a CLOB order book, and now with leverage trading added, along with storage infrastructure like Walrus, the Sui ecosystem is filling in all the key modules needed for DeFi. This signifies ecosystem maturity.

Market Context and Observations

Currently, SUI is priced at $1.49, down 2.35% in the past 24 hours. Over a longer timeframe, it has fallen 16.14% in 7 days but remains up 4.27% over 30 days. This indicates that the Sui ecosystem is experiencing normal market fluctuations, but the medium-term trend remains upward. The launch of features like DeepBook Margin typically takes some time to be reflected in market sentiment—what’s important is that such infrastructure upgrades lay the foundation for long-term ecosystem development.

Summary

The launch of DeepBook Margin has three key implications: First, it introduces functional innovation with fully on-chain leverage trading now available on Sui; second, it enhances ecosystem completeness, making the Sui DeFi infrastructure landscape clearer; third, it expands participation channels, providing new entry points for developers and LPs. This is not an isolated product update but a step in Sui’s evolution from a second-tier public chain to a more mature financial platform. Future focus should be on the actual usage of this feature and how it attracts more DApps and liquidity providers into the Sui ecosystem.