DeFi on Sui: DeepBook, Gasless Stablecoins, and Bitcoin in DeFi with Hashi

Sui’s base layer targets three requirements for practical DeFi: sub-second finality, low fees under $0.02 per transaction, and parallel execution to avoid congestion. Stablecoin transfers are gasless, removing cost barriers for small transactions, while DeepBook provides a native on-chain central limit order book handling billions in volume. The design prioritizes predictable execution for traders and composability for protocols, with margin trading and prediction markets built directly into the liquidity layer.

DeepBook offers three primitives: Spot for on-chain order matching without slippage, Margin for up to 5x leverage with embedded liquidation logic, and Predict for binary options with continuous strikes. These tools enable structured products and options trading entirely on-chain, positioning DeepBook as a venue for institutional-grade derivatives. The protocol’s architecture avoids fragmentation by integrating leverage and liquidation within the same contract, improving liquidity efficiency across applications.

Sui Dollar, issued by Bridge, returns reserve interest to holders and protocols instead of retaining earnings, aligning incentives with yield generation. Gasless stablecoin transfers apply across multiple issuers at the protocol level, reducing friction in DeFi interactions. Confidential transfers, currently in beta, allow private transaction amounts while maintaining auditability, addressing privacy concerns for institutional users.

Hashi introduces decentralized Bitcoin access to Sui’s DeFi stack, enabling yield generation or borrowing without custodial risk or taxable events, supported by a legal opinion and an on-chain BTC insurance fund. Over 20 institutional partners, including BitGo and Ledger, have joined the initiative, with a global testnet planned for July 2026. The protocol’s design targets asset managers by eliminating custodial trust assumptions, signaling a shift toward institutional adoption on Sui.