DeepBook ($DEEP) Surges After v3.1 Upgrade: A New Era of Sui DeFi Liquidity?

2025-04-23

After weeks of relative calm, DeepBook ($DEEP) has exploded back onto the radar with a dramatic 66% price surge, climbing to $0.20 in just one day.

While price action alone often tells only half the story, this time the catalyst is clear: the launch of DeepBook v3.1, a major infrastructure upgrade that signals a new phase of permissionless, efficient DeFi liquidity on the Sui blockchain.

Let’s break down what this upgrade means for the broader ecosystem, how it has contributed to DEEP’s momentum, and why traders and builders alike are eyeing DeepBook as a core component of the next DeFi wave.

DEEP Token Rallies on Technical Momentum and Market Excitement

According to live data from Coingecko, DEEP is now trading around $0.20, rising from a low of $0.11 within a single day.

This puts the token’s 24-hour gain at over 66%, and its weekly performance at more than 120%. At the time of writing, DeepBook’s market cap is now over $500 million, with $998 million in daily volume, numbers that far surpass most mid-cap DeFi assets.

The fully diluted valuation (FDV) of the token stands at $2 billion, with a max supply of 10 billion tokens, of which 2.5 billion are currently circulating.

The total value locked (TVL) in DeepBook’s protocol now exceeds $27.9 million, further validating its growing ecosystem relevance.

This spike comes after a long downtrend on the chart, followed by consolidation, and now what appears to be a sharp breakout, fuelled not by speculative hype alone, but by real innovation in the form of DeepBook’s v3.1 upgrade.

Inside DeepBook v3.1: The Upgrade That Ignited the Rally

The v3.1 upgrade marks a significant step forward in DeepBook’s mission to provide the backbone of Sui-based liquidity.

It introduces four key enhancements that aim to lower barriers for participation, improve market efficiency, and empower developers with better DeFi infrastructure.

1. Permissionless Pools: Access Without Gatekeepers

Perhaps the most significant change in v3.1 is the introduction of permissionless trading pools. For the first time, anyone can deploy a pool between any two tokens by configuring custom parameters such as tick size and asset pairing.

This eliminates the need for formal listings, central approvals, or external incentives to bootstrap liquidity. Builders can now launch DeFi protocols and DEX pairs on DeepBook from day one, solving a common cold-start problem in DeFi: lack of early liquidity.

In practice, this means experimental tokens, small-cap projects, and community-driven assets can all find a home on DeepBook with minimal friction, accelerating Sui's composability and decentralisation.

2. Enhanced Balance Manager and Liquidation Framework

Previously, only pool creators had access to liquidity withdrawal and management tools. That restriction has now been lifted.

The v3.1 upgrade introduces a redesigned balance manager that makes liquidity provision more flexible and allows third-party liquidations.

This opens up DeepBook to a broader range of DeFi use cases, including decentralised margin trading, leverage platforms, and synthetic asset creation.

Protocols can now build on DeepBook’s engine and rely on secure, programmable mechanisms for managing collateral and executing liquidations.

The upgrade also improves the protocol’s robustness and security, key requirements for scaling up high-risk, high-value DeFi primitives.

3. Lower Fees and Narrower Spreads

DeepBook’s new fee structure is designed to increase volume and arbitrage opportunities. The changes include:

Taker fees in normal pools cut from 5 basis points to 1
Maker fees in all pools reduced to zero
Stablecoin pool taker fees cut to 0.1 basis points
Spreads reduced from 8–10 bps to as low as 4 bps

This tighter pricing benefits both traders and protocols. It enhances the trading experience, incentivises volume, and enables new arbitrage strategies, especially for those previously excluded due to wide spreads and high fees.

In essence, DeepBook is positioning itself as the lowest-cost liquidity layer on Sui, which is critical for adoption and cross-protocol compatibility.

4. Trading Fees in Input Tokens

Another major usability enhancement: traders can now pay fees in the token they’re using, rather than being forced to hold and use DEEP. This feature streamlines the UX and makes DeepBook more accessible to users who are focused on specific assets or pairings.

That said, the protocol still incentivises usage of the DEEP token by offering a 20% discount for those who opt to pay fees in DEEP.

This dual-fee structure adds flexibility while still creating utility demand for the native token, an important design choice that balances ecosystem growth with tokenomics.

Why This Upgrade Matters: DeFi Infrastructure With Real Impact

While many DeFi upgrades focus on cosmetic changes or UI refreshes, DeepBook v3.1 goes deeper. It addresses core pain points in DeFi adoption and execution:

Liquidity onboarding for new projects
Risk management through transparent liquidation tooling
Cost efficiency for arbitrageurs and high-frequency traders
Interoperability via permissionless architecture

These features do more than make DeepBook competitive, they make it foundational. For the Sui ecosystem in particular, DeepBook is becoming a DeFi anchor: a place where developers can build, integrate, and scale without waiting for institutional liquidity or centralised gatekeepers.

And for the broader crypto market, DeepBook shows what next-gen trading protocols can look like: low-cost, composable, and accessible.

Conclusion

DeepBook’s latest surge in price is about more than speculation. It reflects a tangible shift in market structure, powered by a thoughtfully designed upgrade and a commitment to decentralised infrastructure.

With permissionless pools, advanced balance management, reduced fees, and user-friendly fee mechanics, DeepBook v3.1 isn’t just a patch, it’s a statement. And judging by the market reaction, traders are listening.

Still, with a market cap over $500 million and an FDV of $2 billion, DEEP now faces a new challenge: proving it can sustain growth, attract builders, and expand its liquidity base in a competitive DeFi landscape.

But if it continues delivering the tools that the next generation of protocols need, DEEP may well become one of Sui’s most important long-term assets.

Frequently Asked Questions

1. What is DeepBook and what does the DEEP token do?
DeepBook is a decentralised liquidity protocol on Sui that enables permissionless pool creation and advanced DeFi features. The DEEP token is used for fee discounts and may serve future governance or utility roles.

2. What changed with the v3.1 upgrade?
DeepBook v3.1 introduced permissionless pools, improved balance management, lower maker/taker fees, narrower spreads, and support for paying trading fees in input tokens, greatly expanding its flexibility and appeal.

3. Is DEEP a good investment after the price pump?
While the price reflects strong momentum, future gains will depend on continued adoption, integration by other protocols, and market conditions. It’s a fundamentally stronger project post-upgrade, but caution is still advised in volatile markets.

Investor Caution

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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Disclaimer: The content of this article does not constitute financial or investment advice.

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