DeepGrid

This project is an automated market-making vault built on Sui that improves liquidity on decentralized order book markets. Users deposit assets into a smart contract vault, which then runs a programmed trading strategy that continuously places buy and sell limit orders near the current market price. By keeping orders tightly spaced, the system creates deeper liquidity, reduces slippage for traders, and captures the bid–ask spread as real trading profit.

Instead of relying on traditional AMM pools, the vault uses professional-style market-making techniques inside Sui’s Central Limit Order Book. The profits generated from trading are distributed to users and partially used to support a protocol token, creating aligned incentives between liquidity providers and the platform. Through dynamic spreads, inventory rebalancing, and oracle-based pricing, the system manages risk while offering sustainable yield. The result is a scalable infrastructure layer that makes Sui markets more efficient, liquid, and attractive for both traders and long-term participants.

I’m building an automated market-making vault on Sui that improves liquidity on DeepBook (a CLOB). The vault’s goal is to keep tight buy and sell orders near the current price (like a narrow-range AMM, but executed through limit orders). This creates deeper order book liquidity, reduces slippage for traders, and earns yield by capturing the spread when trades hit the vault’s bids/asks.

Implementation-wise, the system can be composed of three pieces: (1) a Sui Move vault contract to accept deposits, track shares, and allow withdrawals; (2) an order management layer that interacts with DeepBook to place/cancel/update limit orders within a defined range around the mid-price; and (3) a strategy controller (often an off-chain bot for speed) that watches market price, decides the spread and order sizes, and repositions orders as conditions change. The controller can also manage risk by widening spreads during volatility and rebalancing inventory when the vault becomes too heavy in one asset. Optionally, a token incentive layer can be added where vault participants earn tokens, and a portion of trading profits is used to buy the token to align incentives and support liquidity growth over time.

Notably, Sui makes this viable because low fees and fast execution allow frequent order updates—something that becomes too expensive on higher-fee chains.