DeepBook launches margin trading and points program, further upgrading the Sui liquidity ecosystem

DeepBook officially launches Margin margin trading on the Sui chain, along with the DeepBook Liquidity Points incentive program. This marks another significant advancement following the completion of DeepBook CLOB infrastructure. By introducing leverage trading and liquidity incentives, it further enhances Sui’s trading ecosystem. According to the latest news, users can earn points through direct interaction, aggregators, or other protocols using DeepBook. Projects with deep integration will also enjoy multiplier bonuses.

Core Design of the Margin Function

Isolated Risk Management

DeepBook Margin adopts a market-isolated risk architecture. Margin activities for each trading pair operate independently, including collateral, lending, and liquidation, all handled within the market itself to ensure clear and controllable risk exposure. This design prevents cross-market risk transmission, making users’ risk exposure transparent.

Margin Pools Liquidity Layer

To support margin trading, DeepBook introduces Margin Pools—a native on-chain liquidity and lending layer. These pools accept public deposits, providing liquidity support for the margin market. This means users can now deposit assets into Margin Pools to earn on-chain interest and participate in liquidity provision.

Completeness of Trading Experience

Margin trading runs directly on DeepBook’s CLOB (Central Limit Order Book) architecture. Users can:

• Precise execution: rely entirely on market prices, no intermediaries
• Transparent pricing: all prices driven by the market, verifiable on-chain
• Native leverage: borrow assets for leveraged trading, all on-chain

Incentive Design of the Liquidity Points Program

Multi-Dimensional Participation

The points program breaks through traditional single-incentive models. Users can earn points regardless of how they use DeepBook:

• Direct interaction: perform margin trading directly on DeepBook
• Aggregator routing: use DeepBook liquidity via DEX aggregators
• Protocol integration: invoke DeepBook through other DeFi protocols

Ecosystem Integration Multiplier Mechanism

Deeply integrated projects will receive multiplier bonuses for points. This means projects like Cetus, Walrus, and others with deep cooperation with DeepBook will grant their users higher multipliers when earning points. This design effectively incentivizes close collaboration within the ecosystem.

Impact on the Sui Ecosystem

Healthy Liquidity Cycle

The launch of Margin Pools allows ordinary users to participate in liquidity provision and earn yields for the first time. This creates a new capital flow—users deposit assets into Margin Pools to earn lending interest while providing leverage funds for traders. The points program further incentivizes participation through additional rewards, creating positive liquidity feedback.

Interconnection of Ecosystem Protocols

By allowing aggregators and other protocols to route traffic to DeepBook and offering multiplier incentives to these integrations, DeepBook strengthens its position and promotes protocol collaboration across the Sui ecosystem. This aligns with the core value of “composability” in crypto ecosystems.

Enhancement of Trading Depth

The onboarding of margin trading directly increases market trading volume. According to recent reports, daily trading volume on Sui has been steadily rising. As a core liquidity layer, this upgrade is expected to further attract trading activity.

Notable Future Developments

Based on current information, the launch of DeepBook Margin coincides with active periods for other Sui ecosystem projects like Walrus and Cetus. The depth of their integration will directly influence the effectiveness of the points program. Personal opinion suggests that if mainstream trading pairs and lending protocols effectively integrate DeepBook Margin, this points program could become a key driver for Sui liquidity growth.

Summary

DeepBook’s Margin feature and Liquidity Points plan represent further improvements to Sui’s liquidity infrastructure. Margin Pools enable users to participate in liquidity provision and earn yields for the first time, while margin trading caters to professional traders. The points program, with multi-dimensional incentives and multiplier mechanisms, encourages both direct users and ecosystem protocol collaborations. The core value of this combined approach lies in attracting more capital and traders into the Sui ecosystem through a comprehensive trading and liquidity system. For users interested in Sui’s development, this is a compelling time to participate.