Ex-Sushi CTO Joseph DeLong to Launch Order Book DEX on Robinhood Chain

§ 01 Executive Snapshot

• What: Joseph DeLong is launching a fully on-chain order book decentralized exchange (DEX) named Deepstate on Robinhood Chain next week.
• Who: Joseph DeLong, former SushiSwap CTO and current CEO of Colossus.
• Why it matters: The launch represents a significant innovation in DEX technology, focusing on fully on-chain order book mechanisms, which are uncommon in the current market landscape.

§ 02 Key Developments

• Joseph DeLong announced the launch of Deepstate on Robinhood Chain on July 24, 2023, via a post on X.
• The whitepaper for Deepstate, authored by DeLong, specifies a limit order book that utilizes smart contract storage for its operations.
• The design of Deepstate allows for 4.3 billion logarithmically spaced price ticks and aims to keep gas costs bounded regardless of the number of orders.

§ 03 Strategic Context

• Fully on-chain central limit order books are rare on EVM chains due to the high cost of gas for storage reads and writes, leading many exchanges to match trades off-chain instead.
• DeLong's approach builds on existing designs in the DEX space, particularly referencing the Warp matching engine concept introduced by Joseph Poon and Christopher Jeffrey.

§ 04 Strategic Implications

• The launch of Deepstate may intensify competition among decentralized exchanges on Robinhood Chain, particularly with existing players like Uniswap and 1inch.
• If successful, Deepstate could pave the way for more fully on-chain order book exchanges, potentially influencing industry standards and user expectations.

§ 05 Risks & Constraints

• The high gas costs associated with on-chain order book operations could limit user adoption if not managed effectively.
• Competition from established DEXs may pose challenges in attracting liquidity and user engagement in a crowded market.

§ 06 Watchlist / Forward Signals

• The expected launch date is next week, although no specific date has been provided by DeLong.
• Future developments to watch include the announcement of trading pairs, fee structures, and any associated tokens that may be launched alongside Deepstate.