Deepstate Protocol
The live 2DEEP-governed order book, Rewarder V3 incentives, migration paths, and protocol-owned liquidity.
Deepstate is a fully onchain central limit order book designed around one objective: a superior executable price. Makers compete directly on price, size, and time, while Rewarder V3 directs finite 2DEEP incentives to the best bid and best ask.
Deepstate remains experimental. Smart-contract, governance, market, tokenized-asset, chain, and liquidity risks can cause partial or total loss.
The live system
DGP-003 replaced the launch reward and governance architecture:
- 2DEEP is the capped, directly vote-enabled governance and reward token.
- DeepstateGovernor V2 governs the token, protocol fees, Factory ownership, and protocol-owned assets.
- Rewarder V3 funds each market with at most 100 million 2DEEP over 365 days.
- Rewarder Factory V3 deploys and removes markets; the Governor owns it and the Deepstate Treasury multisig operates it.
- The Router sends its 10 basis-point protocol fee directly to the Governor.
- Governor-owned Uniswap v4 positions provide protocol-owned USDG/2DEEP liquidity.
- Legacy DEEP and STATE remain redeemable into 2DEEP, subject to the shared supply cap.
The Router itself remains the same non-upgradeable order book. DGP-003 changed its owner, fee recipient, and NVDA/USDG reward hook.
The participation loop
- A maker places an NVDA/USDG bid or ask.
- If the order becomes the top of its side, Rewarder V3 tracks its time, quantity, and prevailing spread.
- The maker claims prefunded 2DEEP from the rewarder.
- 2DEEP holders delegate voting power and participate directly in governance.
One tick of price priority moves the reward stream. Quantity affects the reward only after an order is best.
Price priority remains absolute. Size and spread determine how much of the interval ceiling the winning order earns; orders behind the best price do not earn.
Fixed market rewards
| Program | Maximum | Duration after side activation |
|---|---|---|
| NVDA/USDG Rewarder V3 | 100,000,000 2DEEP | 365 days |
The allocation is split evenly between bid and ask. Each side has a 50 million 2DEEP lifetime cap and an independent activation time. Emissions are front-loaded logarithmically, the full-reward quantity grows for 30 days, and the spread multiplier pays 100% at zero ticks, 10% at 10,000 ticks, and approaches zero at the maximum spread.
The curve is a distribution ceiling. Actual claims are lower when size or spread multipliers are below 100%; permanent market removal burns unearned funding and preserves only accrued claims.
Every new Factory market receives the complete 100 million 2DEEP reward budget at deployment. During the token's first two-year endowment term, that ordinary mint also creates a separate one-year Sablier stream equal to 30 / 70 of the market funding for Deepstate Inc.
Governance and protocol ownership
2DEEP uses timestamp checkpoints and self-delegates an address when it first receives tokens and has no delegate. The Governor launched with a 3-day proposal start delay, 3-day voting delay, 7-day voting period, 1% proposal threshold, 10% quorum, and 1-day late-quorum extension. There is no execution timelock.
The Governor owns Rewarder Factory V3. The Deepstate Treasury multisig is the Factory operator and can rapidly deploy or remove markets under the Factory's fixed rules. Governance controls the operator appointment and can recover direct Router ownership from the Factory.
| Area | Control after bootstrap |
|---|---|
| Router fee and recipient | 2DEEP Governor |
| Per-pool reward hooks | Rewarder Factory V3, owned by the 2DEEP Governor; Treasury multisig is operator |
| 2DEEP minter authority | 2DEEP Governor; Rewarder Factory V3 holds the only other persistent minter role |
| Router ownership | Rewarder Factory V3; its owner may return control to the 2DEEP Governor |
| Governor timing and quorum | 2DEEP Governor through governance proposals |
Legacy migration
Legacy assets redeem directly through 2DEEP:
- legacy DEEP burns for 2DEEP at exactly 1:1; and
- legacy STATE is permanently escrowed for
3.015535497731148791 2DEEPper STATE, the pre-harvest snapshot rate.
Redemptions do not create Sablier streams. Both routes mint against the same 3 billion 2DEEP supply cap and remain open indefinitely unless cap headroom is exhausted.
The former Rewarder V1 was disconnected from NVDA/USDG and pinned to sentinel orders before ownership was renounced. Its unissued balance was excluded from migration liability. Legacy DEEP mint roles were removed and its administrator role was transferred to the legacy token contract itself.
Fees and liquidity
The Router charges 10 basis points on matched taker output and sends the fee directly to the new Governor. The official interface may charge a separate disclosed interface fee.
Up to 1 million harvested USDG was used to initialize a 10 basis-point Uniswap v4 USDG/2DEEP pool at $0.01. Three Governor-owned liquidity-position NFTs cover concentrated and full-width ranges. Their fees remain in those positions until governance collects or reallocates them.
| Fee | Recipient | Rate |
|---|---|---|
| Protocol | 2DEEP Governor | 10 bps |
| Interface | Deep State Incorporated | 10 bps |
| Official frontend total | 20 bps | |
See Network & Addresses, Governance, 2DEEP, and Risks.