Varuna

Varuna — Decentralized Spot and Options CLOB Exchange on SUI DeepBook

Problem Sui’s DeFi ecosystem has no native options infrastructure. Most projects focus on AMMs, lending, and perps, leaving users without options for hedging and speculation. On top of that, options trading is mostly centralized: apps like Robinhood can pause trading during periods of high volatility (e.g. GameStop), shutting users out of the market when they need it most. Solution

Varuna is a decentralized options trading platform built on Sui that lets users mint, trade, and exercise call and put options. It fills the options gap by bringing options infrastructure directly to Sui’s DeFi stack.

Security The platform only supports covered options: writers must deposit full collateral (base asset for calls, quote asset for puts) before minting. This avoids naked options and limits downside risk both for the user and the protocol. Users who take highly leveraged positions might get liquidated during volatile periods of the market. Options are a suitable financial instrument for them to limit their losses while still providing leverage. Option tokens are standard Coin<T> types, compatible with Sui’s type system and other protocols.

DeepBook Integration Option tokens are tradable on DeepBook order books. Varuna uses DeepBook’s mid-price as a DeFi-native price oracle, so no external oracles are required. Users can create new liquidity pools for any option/quote pair (500 DEEP fee). This expands DeepBook to option trading.

Frontend & UX A central focus is the frontend: a polished, responsive UI that integrates DeepBook for spot trading and options management. The interface includes OHLCV candlestick charts, a level 2 order book, limit and market orders, and options minting, exercising, and pool creation — all in one place. The design is mobile responsive and works well on phones and tablets.

Presentation Link: https://www.canva.com/design/DAG5ej7rhuo/6UfmeNA4vph97zAET3ilmw/view?utm_content=DAG5ej7rhuo&utm_campaign=designshare&utm_medium=link2&utm_source=uniquelinks&utlId=h5b6d79687d

Website Link: https://hack-money-sui.vercel.app/

Smart contracts (Sui Move) The core options_pool.move module manages a single option type per pool (mint, exercise, settle, claim). It’s generic over OptionToken, BaseAsset, and QuoteAsset. Each option (strike + expiry) is a separate Move module using the One-Time Witness pattern. We tried a factory that minted any option type at runtime, but Sui doesn’t support dynamic types there, so we deploy one module per option type instead.

DeepBook integration We use two DeepBook interfaces: DeepBook smart contracts — Via @mysten/deepbook-v3, we place limit and market orders directly on DeepBook order books for spot trading. DeepBook indexer — We read real-time price data, order book levels, and trade history from the Mysten Labs DeepBook indexer. The frontend uses this for OHLCV charts, the L2 order book, and recent trades.

DeepBook as price oracle We use DeepBook’s mid_price from the base/quote pool as the price feed for options. There’s no external oracle; the pool stores a deepbook_pool_id, and update_price() reads the mid price from that shared object. Anyone can call it; price is valid for 5 minutes, and exercise is only allowed when the updated price is in-the-money.

Option tokens as Coin<T> Option tokens are standard Sui coins. That lets them be traded on DeepBook order books and composed with other Sui protocols. Writers get an OwnerToken that tracks their collateral; claims at settlement use these references.

Frontend React 19 + Vite 7 + Tailwind 4, with @mysten/dapp-kit-react for wallets, @mysten/deepbook-v3 for order placement, and @mysten/sui for RPC and transactions. The DeepBook Indexer supplies OHLCV, order book, and trades; lightweight-charts is used for candlesticks. The UI is responsive and works on mobile.

Integration flow Spot trading uses the DeepBook smart contracts for placing orders and the DeepBook indexer for live price data, order book, and trade history. The options flow uses our Move contracts for mint/exercise, with update_price pulling the latest DeepBook mid price before exercise. Both flows share the same frontend and wallet connection.

Notable details No external oracles: DeepBook mid price is the only price source. Per-option modules due to Sui’s lack of dynamic types at runtime. Full collateralization: 1:1 collateral per option; no pre-minting. Permissionless pools: new option markets can be created for 500 DEEP.