Decentralized vaults for market-making on DeepBook.

https://github.com/owenkrause/deepbook-amm

https://deepmaker.vercel.app/ (soon)

Problem

DeepBook adoption is hindered by thin order books and large bid-ask spreads.

• ETH / USDC has a $130 spread
• Only ~$1000 in liquidity on both sides

Why DeepBook struggles:

• Lack of MMs participating
• Chicken-egg problem → Liquidity issues → Less traders → Less liquidity

ETH / USDC via Cetus

Solution

DeepMaker consists of decentralized vaults that enables users to pool their assets for funding automated market-making strategies on DeepBook.

How DeepMaker provides liquidity:

• Continuous quotes: Always maintain bid / ask orders
• Deep order books: Large order size at each price level
• Multi-level support: Orders at 0.1%, 0.2%, 0.5% from mid price

The Flywheel Effect:

• Vault adds liquidity → Spreads tighten
• Better pricing → More traders come
• More volume → Higher MM profits
• Higher yields → More LPs deposit
• More liquidity + even tighter spreads

Transforming DeepBook's Order Books

Before:

ETH/USDC Order Book:
$2,591.2 - 0.07 ETH
BID: $2453.50 - 0.0045 ETH
ASK: $2580.60 - 0.07 ETH
$2442.9 - 0.08 ETH

Spread: 5.05%

After:

ETH/USDC Order Book:
$2,509.75 - 1 ETH
BID: $2,514.75 - 2 ETH
ASK: $2,519.35 - 2 ETH
$2,524.35 - 1 ETH

New spread: 0.18%

Spread reduction: 96% Trader savings: $2,400 per $50k trade

How it works

Deposit

• User deposits 50 / 50 ratio of pool assets
• Vault calculates deposit value using real-time Pyth price feeds
• LP tokens minted proportional to share of vault (if vault has $100k TVL and you deposit $10k, you get 10% of new LP supply)

let lp_tokens_to_mint = deposit_value * total_lp_supply / total_vault_value;

Withdraw

• Burn LP tokens anytime
• Receive proportional share of both the quote and base asset