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aslan.sui
Verified account This account is verified. Learn more@aslan_web3
leading @DeepBookonSui, previously defi at gsr, coinbase. interests: defi, mev, systematic trading. all opinions my own
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We are actively working on calibrating fees. Ultimately, the protocol serves two principles:
1. The pool (PLP) has a sound risk profile. When users supply to the counterparty pool, they expect a risk adjusted return that's competitive in the market. Higher fees earn more for PLP but push traders away.
2. Best execution for takers. Lower fees encourage more trading activity, but also invite adverse flow, which can hurt PLP.
For context, here is how fees work and why the peer to pool model is not as simple as the peer to peer model for fees.
The oracle provides a probability for every strike from the SVI model. This is the mid price. On top of this, we have to consider three main variables when deciding the optimal fee:
1. Confidence of the probability - this is usually the spread you see on a normal exchange. Market makers don't quote at the exact mid, they quote a bid/ask spread, and usually this is dynamic based on volatility and micro structure. Spreads in options markets are known to be wide because these are the hardest markets to price.
2. Inventory - the fee the pool needs to charge for taking on the counterparty risk.
3. Adverse flow - the fee to combat adversarial participants with faster data / manipulation / etc.
We've done extensive backtesting and simulations and have landed on a very conservative fee structure and plan to tweak it during alpha. Our goal is to land on a fee structure that supports the two protocol principles: a profitable asset for suppliers (PLP) and the best execution price for takers.
1. The pool (PLP) has a sound risk profile. When users supply to the counterparty pool, they expect a risk adjusted return that's competitive in the market. Higher fees earn more for PLP but push traders away.
2. Best execution for takers. Lower fees encourage more trading activity, but also invite adverse flow, which can hurt PLP.
For context, here is how fees work and why the peer to pool model is not as simple as the peer to peer model for fees.
The oracle provides a probability for every strike from the SVI model. This is the mid price. On top of this, we have to consider three main variables when deciding the optimal fee:
1. Confidence of the probability - this is usually the spread you see on a normal exchange. Market makers don't quote at the exact mid, they quote a bid/ask spread, and usually this is dynamic based on volatility and micro structure. Spreads in options markets are known to be wide because these are the hardest markets to price.
2. Inventory - the fee the pool needs to charge for taking on the counterparty risk.
3. Adverse flow - the fee to combat adversarial participants with faster data / manipulation / etc.
We've done extensive backtesting and simulations and have landed on a very conservative fee structure and plan to tweak it during alpha. Our goal is to land on a fee structure that supports the two protocol principles: a profitable asset for suppliers (PLP) and the best execution price for takers.
@aslan_web3 your fee config which was updated just before the launch is insane, 20% base fees and grow up to 3x for the last minute basically affects all 1 minute markets, how anybody supposed to trade by getting down 20% right after opening a position?View quoted post on X
DeepBook App alpha is live for waitlisted users!
The app supports spot CLOB and Predict.
Predict is the first ever peer to pool protocol for options. This allows us to support 1 minute markets, starting with BTC UP/DOWN.
Please share any feedback, there's so much more to come!
The app supports spot CLOB and Predict.
Predict is the first ever peer to pool protocol for options. This allows us to support 1 minute markets, starting with BTC UP/DOWN.
Please share any feedback, there's so much more to come!
DeepBook App is LIVE in Alpha.
Spot on the deepest book on Sui.
1-minute prediction markets on BTC.
Full API from day one.
Start trading → deepbook.xyzView quoted post on X
DeepBook Predict: a peer to pool protocol for high frequency binary options.
More soon
More soon
BOOM!!
The DeepBook Trading App is almost here.
Featuring DeepBook Predict with 1-minute markets🔥
Join the waitlist: waitlist.deepbook.techView quoted post on X
Wait this is dope
Introducing X-Predict: It lets you bet on @DeepBookonSui directly from X.
Reply to a market post with your stake, take, or even leverage. That reply becomes your bet—settled by the oracle and paid straight to your wallet.
Live on testnet.View quoted post on X
