Breaking the Curse of Institutional Tokens: Sui's Path to Breaking Through with New Assets
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Breaking the Curse of Institutional Tokens: Sui's Path to Breaking Through with New Assets
In this blockchain revolution, Typus's attempt might become the key step to breaking the fate of "institutional coins."
Navigating Web3 tides with focused insightsAuthor: kyrie, CGO of Typus Finance
In the world of cryptocurrency, the term "institutional coin" has always been a nightmare for retail investors. But why do project teams struggle to break free from institutional influence? Behind this lies complex business logic and practical considerations.
The Dilemma of Token Launch: High Costs and Reliance on Institutions
Source: Simon’s X (@sjdedic)
Successfully launching a cryptocurrency project often comes at a cost far exceeding public imagination. Just the token launch process alone can consume $1–3 million. This expense typically covers:
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Smart contract development and auditing
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Initial liquidity provision
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Market maker partnership fees
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Exchange listing fees
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Marketing expenditures
This staggering cost forces many project teams to bow to institutional investors, centralized exchanges, and market makers—what we call “institutional forces.” Once down this path, projects fall into a vicious cycle:
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Early-stage funding dilution: large amounts of tokens sold to institutions at discounted prices
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Soaring listing costs: major exchanges charge listing fees reaching hundreds of thousands of dollars
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Persistent high market-making costs: professional market makers demand high fees and significant token allocations
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Pressure of market cap management: institutional investors demand stable token prices, driving up marketing expenses
The consequences of this dependency include:
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Token distribution favors institutions, leaving retail investors with limited fair access
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Project potential is exhausted early, with institutions cashing out while retail bears the risk
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A betrayal of blockchain's original decentralized ethos
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Project teams lose focus on product development, forced instead to dedicate excessive effort to price maintenance
Innovation in the Sui Ecosystem: Typus Finance’s Path to Breakthrough
"If sufficient liquidity like that of a centralized exchange could be provided from day one, retail investors wouldn’t need to rely on institutions anymore." This seemingly simple idea has become the mission of Typus Finance within the Sui ecosystem.
On Sui—a high-performance public blockchain—Typus sees an opportunity to overcome these challenges. Their solution cleverly integrates Deepbook’s order book system, essentially building a professional-grade exchange infrastructure on-chain. However, infrastructure alone isn’t enough. The real innovation lies in how they solve the liquidity challenge.
Imagine combining idle funds from lending protocols with professional market-making expertise, then using options instruments to balance risks. What would happen? That’s exactly where Typus is headed. Their goal isn't just to replace second-tier centralized exchanges, but to empower Sui-based projects with greater negotiating power against major exchanges.
Deepbook: Redefining Order Book Infrastructure
Source: Sui Blog
In the crypto market, the order book system acts as the exchange’s "heart"—its performance directly determines the vitality of the entire platform. For a long time, this core infrastructure has been monopolized by centralized exchanges, erecting a high wall that keeps decentralized projects out.
Typus chose to partner with Deepbook, recognizing its breakthrough potential as a native order book system within the Sui ecosystem. It's like opening a new gate through that wall, enabling decentralized trading to match the performance of centralized exchanges.
Deepbook excels across three key dimensions:
First, its extreme performance:
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Capable of processing tens of thousands of orders per second—fast enough to satisfy even the most demanding high-frequency traders
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Latency as low as milliseconds, giving on-chain traders wings
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Supports various complex order types, meeting diverse trading strategy needs
Second, its native liquidity advantage. Imagine a flowing river—Deepbook serves as its main channel:
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Directly connects all liquidity providers within the Sui ecosystem
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Greatly reduces cross-platform arbitrage opportunities, leading to more accurate pricing
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Provides deeper liquidity pools, allowing even large trades to execute smoothly
Finally—and most revolutionarily—its cost efficiency:
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Leverages Sui’s low gas fees to minimize transaction costs
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Eliminates layers of middlemen fees, returning more profits to market participants
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Creates larger profit margins for market makers, attracting more professional players
Together, these advantages make Deepbook more than just an order book—it’s an infrastructure capable of reshaping market rules. Like a modern trade port, it handles massive transaction volumes while delivering an unprecedented experience for every participant.
In Typus’ vision, Deepbook is a foundational pillar for truly decentralized token launches. When high-performance infrastructure meets innovative liquidity solutions, new projects finally see a way out of institutional dependency.
Typus’ Innovation: Option-Driven Liquidity Solution
In traditional crypto markets, market makers are like tightrope walkers performing acrobatics. They constantly adjust positions on both buy and sell sides, striving to maintain balance amid price fluctuations. This job may seem straightforward, but it's filled with challenges and risks.
Imagine this: when markets suddenly surge or crash, market makers find themselves trying to stay balanced in a storm. They face two major threats: directional risk (Delta risk) caused by price movements—as if the tightrope were being blown sideways—and rebalancing costs (Gamma risk) from constant position adjustments—like shifting weight repeatedly to avoid falling.
To manage these risks, market makers usually adopt conservative strategies:
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Widen bid-ask spreads, effectively increasing their “insurance premium”
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Reduce offered liquidity, equivalent to lowering the height of the tightrope
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Withdraw entirely during extreme volatility, choosing to pause the act temporarily
This is why we often observe sharp price swings precisely when the market needs liquidity most—because market makers have chosen to retreat.
Typus offers a highly creative solution. Instead of leaving market makers to face these risks alone, why not provide them with a complete "protection system"?
First, Typus has established an innovative options liquidity pool. This acts like a safety net for the tightrope walker, allowing them to operate with greater confidence in the market. Project teams can create options pools here, providing market makers with hedging tools—all managed transparently and efficiently via smart contracts.
Second, Typus skillfully integrates lending protocols. Imagine vast amounts of capital lying dormant across the Sui ecosystem; Typus wakes them up, arming market makers with additional firepower. This not only reduces their capital costs but also improves overall capital efficiency across the ecosystem.
Finally, Typus has designed a sophisticated incentive mechanism—akin to setting up a fair reward system for performers:
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Market makers who consistently provide liquidity earn higher returns
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Interests of all participants are carefully balanced
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The entire system forms a sustainable, self-reinforcing ecosystem
The greatest strength of this mechanism is that it enables market makers to supply liquidity at lower cost and with greater stability. When market volatility hits, they no longer panic and flee—they can use options instruments to hedge risks and continue supporting market liquidity.
For project teams, this means accessing more stable market liquidity at a lower cost. For traders, it translates to reduced slippage and better execution. This is the unique value of Typus’ approach: it doesn’t just solve pain points for market makers, but brings unprecedented stability to the entire market.
Ecosystem Win-Win: The Beginning of a Virtuous Cycle
Imagine the traditional token launch process: founders often walk a thorny road, constantly bowing to institutions, offering tokens at steep discounts for support—only to end up labeled a “institutional coin.” But in the new world built by Typus, this story can unfold very differently.
When a new project prepares to launch on Sui, they no longer need to beg for support. Through Typus’ infrastructure, they gain immediate access to professional-grade liquidity. It’s like paving a smooth highway for entrepreneurs—prices form organically, large trades don’t cause violent price swings, and small traders enjoy fair pricing.
This new paradigm unlocks fresh opportunities for every participant in the ecosystem:
For project teams, it’s true liberation:
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No longer burdened by exorbitant launch costs
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Full control over token distribution
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Freedom to focus precious time and energy on product development. Most importantly, they can realize their vision on their own terms—not led by the nose by institutions.
For market makers, it’s a more sustainable business model:
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Access to robust risk management tools, eliminating fear during market swings
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Dramatically lower operating costs, ensuring healthier profit margins
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More stable income streams, enabling long-term strategic planning. It transforms a high-risk speculative venture into a professionally run, sustainable business.
For retail investors, it’s nothing short of a comeback:
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Finally able to participate in quality projects at fair prices
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Seeing genuine supply-demand dynamics, not institution-manipulated outcomes
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Lower transaction costs, transforming from mere “cabbage” to valued market participants
And for the broader Sui ecosystem, these changes combine into an upward momentum:
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More high-quality projects will be attracted by this fair mechanism
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The ecosystem gradually builds its own independent project distribution channel
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An organic, inside-out growth model takes shape
It’s like planting a seed that grows into a mighty tree. Quality projects attract more users, user growth draws in more projects—the virtuous cycle begins. Gradually, the entire ecosystem becomes stronger, and every participant finds room to grow in this fertile ground.
In this new ecosystem, we no longer see zero-sum games, but a beautiful picture of mutual prosperity. When every participant can fairly share in the rewards of growth, the market can finally achieve true sustainability.
Future Outlook
Typus’ innovative attempt marks a significant step toward maturity in the crypto market. By rethinking the token launch mechanism, it strives to create a win-win path for project teams, investors, market makers, and retail alike.
Potential changes brought by this new paradigm include:
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More projects adopting fully decentralized launch paths
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Repositioning of institutional investors’ roles
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Revolution in market-making models
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Greater retail participation
In this blockchain revolution, Typus’ experiment might become the crucial step to break the fate of "institutional coins." When every participant can find their rightful place in the system, true decentralized finance can finally move from ideal to reality.
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