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Navi Protocol: The first native one-stop Liquidity protocol in the Sui ecosystem has a lock-up position value exceeding 3M USD.
The Liquidity Protocol Rising in the Sui Ecosystem: Navi Protocol
Navi Protocol, as the first native one-stop Liquidity protocol in the Sui ecosystem, is rapidly rising. The protocol offers lending services and currently supports SUI and USDC, with plans to expand to assets such as WBTC and WETH in the future.
Recently, the total locked value of Navi Protocol reached $3.18M, an increase of 47.62% compared to the previous week, accounting for 80% of the total locked value of Sui's lending services. The protocol uses a DEX+CEX mechanism as an oracle and provides cross-chain services.
In terms of lending services, the Navi Protocol mainly involves two types of participants: depositors and lenders. Lenders need to provide collateral and pay interest, while depositors earn returns by depositing assets. The protocol's interest rates are dynamically adjusted based on the utilization rate of funds and have rate mutation points. It is worth noting that the Navi Protocol integrates the CLOB system Deepbook from the Sui chain during the liquidation process, a innovation that is expected to bring lower latency and gas fees.
In the future, the Navi Protocol plans to launch a Pro version, introducing the concept of isolation pools. This feature is mainly aimed at collateral loans for low Liquidity assets and requires approval from community governance to go live. It is expected to include measures such as borrowing limits and asset restrictions.
Although the Navi token has not yet been listed, the white paper reveals that it will support functions such as staking, voting, and protocol yield distribution in the future. Staking Navi tokens will also grant holders voting rights on pool yield distribution and discounts on DEX trading.
Overall, while Navi Protocol has a similar overall framework to mainstream lending protocols, its isolated pool design fills the gap in the market for low Liquidity token lending, while also considering security. As the main lending protocol of the Sui ecosystem, Navi Protocol demonstrates strong competitiveness and development potential.