DeepBook Margin launches leverage trading feature: Sui ecosystem ushers in a new era of on-chain finance

January 23, 2026, the DeepBook, the core liquidity layer of the Sui ecosystem, officially announced the launch of the leverage trading feature Margin. This feature introduces fully on-chain execution and highly composable leverage trading capabilities to the Sui blockchain, marking a significant leap for decentralized finance (DeFi) infrastructure toward mature capital markets.

01 Feature Innovation: The Core Breakthrough of DeepBook Margin

The core design philosophy of DeepBook Margin is to bring the mature leverage trading models from traditional finance into the blockchain world in a decentralized, transparent, and programmable manner. This feature allows users to amplify their trading positions by borrowing funds, enabling trading at a scale beyond their own capital holdings.

According to official technical documentation, DeepBook Margin has a comprehensive risk management mechanism built-in. Its liquidation engine operates entirely through on-chain smart contracts. When a leverage position falls below the maintenance margin requirement, the system automatically executes liquidation to protect lenders and maintain the system’s solvency.

This upgrade adds a decisive advantage to DeepBook’s position as the “core financial engine” of the Sui network.

Currently, DeepBook’s daily liquidation trading volume exceeds $15 million, supporting over 20 applications, with on-chain transaction settlement times reaching 390 milliseconds. The addition of the Margin feature will undoubtedly significantly amplify its network effects and capital efficiency.

02 Ecosystem Empowerment: A Dual-Track Growth Flywheel

The uniqueness of DeepBook Margin lies in its construction of a dual-ecosystem that serves both developers and ordinary asset holders, installing a powerful engine for the prosperity of Sui DeFi.

For developers, this represents a paradigm shift in development experience. Now, developers can seamlessly embed the complete leverage trading process into their decentralized applications (DApps) using the SDK and API provided by DeepBook.

This means that an emerging trading protocol or asset management application can offer professional-grade leverage trading services to its users without building complex and high-risk risk engines from scratch or struggling to find deep liquidity. This greatly lowers the barrier to DeFi innovation and is expected to spawn a wave of new applications.

For the broader cryptocurrency holders, this opens a new passive income model. Users can earn yields by providing liquidity to DeepBook’s leverage trading pools, such as staking assets like dbUSDe. This approach allows users to benefit from the growing trading demand across the ecosystem without actively engaging in high-risk leverage trading.

03 Market Opportunity: Infrastructure Race in the Institutional Wave

The launch of DeepBook Margin comes at a critical period of structural change in the cryptocurrency market. The industry is shifting from a cyclical frenzy dominated by retail speculation to a “long-term war” driven by institutional capital deployment.

The narratives relying on halving events, macroeconomic factors like interest rate fluctuations, and other traditional four-year cycle drivers are losing effectiveness. Market pricing power is gradually shifting to institutional capital seeking compliant and robust infrastructure.

Grayscale has launched the DEEP trust product, which itself signifies that DeepBook, as the liquidity core of the Sui ecosystem, has gained recognition at the institutional level.

Against this backdrop, a trading engine capable of providing an experience comparable to centralized exchanges, with on-chain transparency and non-custodial advantages, will become a key gateway for the next wave of institutional capital. The launch of DeepBook Margin aims to meet this growing market demand and “clear the final obstacles for serious capital.”

04 Gate Ecosystem: Collaborative Progress with Sui and DeepBook

As a leading global cryptocurrency trading platform, Gate has always been committed to expanding and connecting the most promising blockchain ecosystems. In the development blueprint of the Sui ecosystem, Gate is not a bystander but an active participant and enabler.

Through its subsidiary, Gate Ventures, Gate has strategically invested in several core projects within the Sui ecosystem, including Momentum DEX, which may generate synergistic effects with DeepBook’s liquidity layer in the future.

Gate’s platform itself is also continuously evolving. According to its Q4 2025 report, Gate’s registered users approach 50 million, supporting over 4,300 assets. In the DeFi field, Gate’s perpetual contract DEX (Gate Perp) accumulated over $1 billion in trading volume within its first full quarter after launch.

As of January 23, 2026, Gate’s platform token GT is priced at $9.9139.

Gate’s deep experience in spot and derivatives trading, its large user base, and support for innovative DeFi protocols make it an ideal bridge connecting the centralized world with emerging public chains like Sui. The success of DeepBook Margin may further enrich Gate users’ options for exploring on-chain native financial products.

05 Future Outlook: Innovation Sparks Ignited by Composability

The most imaginative aspect of DeepBook Margin is its “fully on-chain and composable” feature. This means leverage trading is no longer an isolated function but can be freely combined and nested into more complex financial products like LEGO building blocks.

It is foreseeable that based on this foundational component, the Sui ecosystem will see many innovations: for example, leverage yield farms combined with automated strategies, options products embedded with leverage hedging options, or on-chain lending modules supporting GameFi economic models. The official launch of liquidity incentive programs also aims to motivate early users to participate and test, accelerating the ecosystem’s cold start.

Future Outlook

With the activation of the Margin feature, the $15 million daily liquidation trading volume on DeepBook may just be the beginning. Professional market makers and quantitative funds are starting to deploy capital into transparent and programmable risk engines on-chain.

Emerging DeFi protocols are rapidly building complex derivatives that traditionally would take years to develop, leveraging their SDKs.

All of this is based on a simple fact: the future of finance is being rewritten by a line of composable, verifiable smart contract code.