The Sui Foundation Announces $51.3 Million Ecosystem Fund for DeFi and DeepBlock
The Sui Foundation, which oversees the Sui blockchain, has revealed a $51.3 million ecosystem fund to support its decentralized finance (DeFi) ecosystem and on-chain central limit order book-based platform called DeepBlock. This move aims to enhance the growth of the Sui ecosystem by offering grants to DeFi developers and supporting the DeepBlock platform for on-chain trade routing and matching.
DeepBlock: Emulating High-Frequency Trading Capabilities
DeepBlock is designed to replicate the high-frequency trading capabilities of centralized exchanges like Nasdaq, leveraging the swift transaction speed of the Sui network. The Sui Foundation spokesperson highlighted the advantages of Sui, including low latency, high throughput, scalability, and efficient on-chain storage. The press release also boasted that the network achieved a record-breaking 65.8 million transactions in a single day, surpassing all other blockchains.
Moving Liquidity from Centralized Exchanges
During Sui’s mainnet launch in May, the foundation allocated 396 million tokens to market makers, representing 75% of its initial circulating supply. Now, the foundation is reclaiming those tokens without disclosing details about the deal with market makers. However, they did mention that SUI remains highly liquid on centralized exchanges (CEXes).
Supporting Native DeFi Applications
In addition to focusing on DeepBlock, the Sui Foundation plans to support other native DeFi applications such as automated market makers (AMMs), decentralized exchanges (DEXes), liquid staking, and lending protocols on its network. Currently, Sui ranks 35th in terms of total deposits in DeFi protocols with assets worth $38.2 million.
Hot Take: Sui Foundation Boosts DeFi Ecosystem with $51.3 Million Fund
The Sui Foundation’s decision to establish a $51.3 million ecosystem fund demonstrates its commitment to supporting the growth and development of the Sui blockchain. By allocating funds to DeFi developers and their applications, as well as enhancing the DeepBlock platform, the foundation aims to attract more participants and liquidity to its ecosystem. With its high-speed transaction capabilities and impressive transaction volume, Sui has the potential to become a significant player in the DeFi space. As Sui climbs up the ranks of top blockchains in terms of total deposits in DeFi protocols, it will likely gain further attention from investors and industry players.
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