one of s's best features deep book is launching a token now deep book isu's onchain liquidity book that any decentralized exchange onui can pull from or add to that just means everyone is sharing this liquidity and you get the best prices on your trade for example you can see that cus is competing with the largest crypto exchanges when it comes to liquidity and trading volume so in this video we're going to go over how they do that the deep token airdrop and the Deep token nomics but first disclaimer this video is sponsored by theu foundation
and I'm just here to educate and not speculate speculating is for other non-sponsored content so I'm just here to share what deep book is and how you can participate in the airdrop and get value from this feature all right with that let's get started what is deep book the backbone ofu defi idity not that helpful let's go into the white paper we can get a lot of technical stuff or we can go into the docs and deep book is a Next Generation decentralized Central limit order book otherwise known as a clob built on Suite deep
book leverages swee parallel execution and low transaction fees to bring highly performant and low latency exchanges on chain meaning trades happen quickly and you get a very good price still a little little technical but let's break that down deep book is the liquidity layer of the sweep blockchain so any decentralized exchange can use that liquidity and they can add to that liquidity and there's incentives for doing so because if you want to provide users with the best price possible you pull all this liquidity together so you can get the best price so as an example
liquidity is very different depending on centralized exchanges they don't have all the tokens they have a small pool of tokens that they allow users to trade from provided from their market makers so that means you might get a different price depending on the centralized exchange you use and that also depends on how much you're buying so we're going to look at an example na'vi this is a decentralized exchange on the sweep blockchain zooming out a little bit we can see that there are some decentralized exchanges here and some centralized exchanges here noted by CeX and
deex now what we want to sort by is Plus 2% minus 2% depth which means if you buy $27,000 worth of the navx token on CIS that's going to move the price by 2% whereas if you buy $48 worth of na'vi on coinex it's going to move the price by 2% meaning you are not going to get a good price if you buy more than $10 worth of tokens now this is happening because these centralized exchanges have fragmented liquidity that means they only have a set of tokens that they can pull from provided by their
market makers and they have to decide how much of a token they want to hold for trading and it also depends on the users on there are they actively trading it if not you won't be getting a good price and if we look at this chart again if we look at cus a decentralized exchange onui you can buy $27,000 worth of this token before the price moves 2% whereas the next best price you could get would be on gate.io by buying 3,00 000 so if you are going to make any significant trades you're going to
get the best price by using deep book onui but there is no interface for dbook dbook is just the infrastructure layer on the site blockchain so as we mentioned earlier any exchange can pull from it or add to that liquidity so if you're going to trade on deep book you would be using the decentralized exchanges that are available like aftermath Finance cadex cus flow Finance hop aggregator turbos or 7K aggregator and we can probably expect more in the future because s is an actively growing ecosystem I forgot to mention liquidity what does that mean so
if you're new to crypto if you're new to defi liquidity just means coins that are available to trade on that exchange so that happens for a centralized exchange and decentralized exchange if you have poor liquidity that means you don't have enough coins to trade and you're going to get a bad price and if you're in defi you can put up your own liquidity to a decentralized exchange to earn fees for doing that so let's say I have $100 worth of usdc and $100 worth of s I can put that up on a decentralized exchange and
then that gets used by Deep book The liquidity layer ofu and then whenever someone makes a trade between s and usdc I earn some fees the depending on the parameters I set of course but I earn fees whenever someone uses my liquidity or whenever someone uses the coins that I put up to be available for trade so whenever we talk liquidity that just means the coins that are available to trade the Deep book airdrop if you have one of these nfts the amount is going to be very different depending on how much you are trading
on an eligible decentralized exchange and you would have received the Deep book claim nft something like this in your wallet do not delete it do not get rid of it this is your claim to the Deep book airdrop now if you did receive one of these nfts you want to participate in this galaxy campaign so if you go to deep book onui the official X account this is another chance to prove your Mastery on deep book so this is for people that hold a deep book claim nft you need to validate your nft on the
Deep book Discord log into Galaxy connect your Discord and complete the quiz to show off your your deep book expertise now the more quizzes you complete the better prepared you'll be for what's coming next this could be another airdrop this could increase your current airdrop we have to speculate just a little bit here so now let's take a look at the Deep tokenomics Deep's utility as a Cornerstone of deep book deep facilitates seamless transactions incentivizes liquidity provision which means you would receive rewards in the form of deep token for providing liquidity and aligns the interests
of all participants in our growing dii ecosystem payments deep token is used for payments of trading fees and pool creation fees in deep book by using a native currency deep book offers a cohesive and unified trading experience liquidity deep token enhances trading liquidity within deep book Pools by offering rebates to market makers that means you'll be getting a discount on your trades during low liquidity periods and volume discounts to liquidity takers these mechanisms ensure minimal slippage and a robust trading environment making deep ideal for professional Traders and institutional investors then we have governance the Deep
token enables pool level governance by adjusting staking requirements and fees its quasi concave voting system ensures small voters have a significant voice while preventing governance captured by large holders I like this this is not something I've seen in other governance tokens nor normally the richest people have the biggest voice so that is good for deep more on the tokenomics it is going to be called Deep there is going to be a 10 billion Supply 2.5 billion will be the initial circulating Supply 25% of the supply is unlocked at Genesis tokens will be released over 7
years and of that 25% that is unlocked when the token launches 10% of that or well 10% of the total will be for the initial Community airdrop so we can see what that looks like when the token launches there is going to be 25% of the token available 10% of that is the initial Community airdrop then we have about 28% for core contributors and early backers this allocation represents core contributors who have supported the engineering infrastructure security growth and operations of the deep book protocol then we have about 61% for ecosystem growth 14% will be
unlocked at tge that is the token generation event that is when the token launches followed by a 7-year unlock this portion of the allocation supports long-term growth of the ecosystem and supports developer grants Community programs and Community initiatives now Community initiatives could be airdrops that could be rewards those are things to get the community active and the community likes rewards so that's where you have to follow along and find those opportunities and then this is what the token unlocks look over the next 7 years we have one jump here after the first 12 months and
then a very gradual curve after that now let's take a deeper look at the Deep utility because the Deep token is used for the payment of trading fees so if there's a lot of trading there's a lot of trading fees and a lot of the deep token is used so looking at defy Lama we look at the TBL ofu it's over a billion dollars and as of recently the trading volume has been in the hundreds of millions of dollars for the s blockchain so that means a lot of deep token is going to be used
for those trading fees and pool creation fees in deep book Additionally the token offers rebates to market makers so that's people providing liquidity to deep book so to sum that up the utility of the deep token is to incentivize liquidity which helps provide a better experience for people using the sweet blockchain all right I hope all of that made sense and I hope you were eligible for a deep book air drop uh if you wen't there's other opportunities out there in the sweep blockchain so be sure to follow this channel for more of those opportunities
if this video was helpful you know what to do and with that I hope you got your full value for today
