DeepBook Maxi

DeepBook Maxi

Implement market making strategy using DeepBook

The problem DeepBook Maxi solves

It allows user to earn high yield using DeepBook. In the hackathon, we have used The Stoikov Market Maker strategy, which places bid and ask prices based on factors like initial stock price, spread, total balance, volatility, and a user-defined profit target. This dynamicity allows users to tailor strategies to the ever-shifting financial landscape. This is also a proven strategy in traditional finance which can now be used through order books (deepbook) in SUI network.

This will also be greatly beneficial to SUI network as it will incentivize liquidity providers to provide more liquidity DeepBook (or on SUI network), hence increasing its TVL. As the TVL grows, SUI will attract more developers and web3 enthusiastics, hence making it a win-win solution.

For the demo purpose, limit orders were placed on SUI Mainnet using DeepBook according to Stoikov market maker strategy. Transaction blocks of my account can be found here:

Example of limit order transaction:

Challenges I ran into

It was difficult to find comprehensive documentation on DeepBook as it is relatively new technology. There were few errors while creating smart contracts due to which we had to skip that part. Apart from that, the hacker house examples and sui repository was a great help to view and learn from direct examples.

Technologies used

Cheer Project

Cheering for a project means supporting a project you like with as little as 0.005 ETH. Right now, you can Cheer using Ether on Arbitrum, more networks will be supported soon!