From Soulbound NFT to Liquid DEEP: DeepBook’s Strategy on Sui Network

DeepBook, a provider of liquidity solutions on the Sui network, is launching its new native token, DEEP. Designed for institutional and professional traders, DEEP aims to solidify DeepBook as a player in the Web3 financial landscape. With its official release set for later this year, early adopters can get their hands on a unique soulbound NFT, paving the way for an innovative token claim process.

DEEP Token and Soulbound NFTs

The DEEP token system operates through four primary mechanisms: volume-based fees, maker incentives, stake-dependent participation, and stake-based governance. The details of these mechanisms are provided in the DeepBook token whitepaper, giving transparency to all participants. The token claim process utilizes a soulbound NFT that is non-transferable and tied to the recipient’s wallet. Upon launch, holders can convert their DBClaimNFT into liquid DEEP tokens.

DeepBook’s DBClaimNFT is an example of this emerging asset class, demonstrating the potential for NFTs to play functional roles in governance and network participation.

DEEP Token’s Functional Features

DeepBook’s architecture includes volume-based fees and incentives for liquidity providers, encouraging active participation in the network. Staking DEEP tokens also grants users a role in governing liquidity pools.

To guard against wash trading, any tokens gained by a pool in a given epoch will always match or exceed the tokens it issued, with any excess being burned. Furthermore, as the total activity increases, the incentives decrease significantly, reducing the motivation for traders to create fake volume.

Additionally, DeepBook aims to prevent governance manipulation by simplifying rule-making. Traders may vote for lower fees, but such changes affect all transactions equally. This ensures no specific group can tailor fee structures to their advantage, promoting fairness.

Soulbound NFT Use Cases

Soulbound tokens (SBTs) might transform how we manage digital identities and ownership, streamlining the verification of personal details like educational records or medical history. They could smoother processes like KYC and help build solid digital reputations based on real-world achievements.

Beyond identification, SBTs could reshape gaming by awarding non-tradeable achievements, ensuring fair voting in decentralized organizations, preventing ticket reselling for events, and protecting artists’ intellectual property by tying their creations directly to their digital identity. This speculative leap into SBTs promises a future where digital assets become more personal and secure.