Sui ecosystem's first native lending protocol Navi: Lock-up Position value surges by 47% Innovative liquidation mechanism draws attention

The First Native One-Stop Liquidity Protocol of the Sui Ecosystem: Overview of Navi Protocol

Navi Protocol, as the first native one-stop liquidity protocol in the Sui ecosystem, functions similarly to Aave, mainly providing lending services. Currently, the protocol only supports lending services for SUI and USDC, but it plans to expand to assets such as WBTC and WETH in the future.

A Quick Overview of Navi Protocol: The Leading Liquidity protocol on the Sui Ecosystem

From the data, the development momentum of Navi Protocol is strong. Its total locked value has reached 3.18 million USD, an increase of 47.62% compared to last week, accounting for 80% of the total locked value of Sui lending services. The protocol uses a DEX+CEX mechanism as an oracle and provides cross-chain services through Wormhole.

In terms of lending services, the main participants of the Navi Protocol include depositors and lenders. Lenders are required to deposit a certain amount of supported collateral and pay interest, while depositors earn returns by depositing funds into the corresponding asset pool. The interest rates of the fund pool are dynamically adjusted based on the utilization rate of the funds; generally, the higher the utilization rate, the higher the interest rate.

It is worth noting that the Navi Protocol has made innovations in its clearing mechanism. As a protocol based on the Move-based public chain SUI, Navi will utilize the decentralized central limit order book Deepbook of the Sui chain for clearing, and this design is expected to bring lower latency and gas fees.

In the future, Navi Protocol plans to launch a Pro version, which will include the isolation pool feature. This feature is primarily aimed at long-tail assets with low liquidity and adopts an isolation strategy, which requires community governance approval before going live. It is expected that the isolation pool may set lending limits and restrict lending assets, among other measures.

In terms of token economics, although the Navi token has not yet been launched, according to the disclosures in the white paper, future Navi token holders will be able to participate in activities such as staking, governance voting, and obtaining a share of the protocol's revenue. In addition, staking Navi tokens may also provide voting rights for fund pool revenue distribution and discounts on DEX trading.

A Quick Overview of Navi Protocol: The Leading Liquidity Protocol on the Sui Ecosystem

Overall, Navi Protocol, as the main lending protocol of the Sui ecosystem, while not making disruptive innovations to traditional lending models, its isolated pool design complements the market's demand for lending low Liquidity tokens while ensuring security. As an important component of the Sui ecosystem, Navi Protocol demonstrates good development potential and is worth continuing to pay attention to its future performance.

SUI2.36%
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TaxEvadervip
· 07-21 13:05
The rise is still quite strong.
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WalletsWatchervip
· 07-20 21:54
Navi went big.
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SignatureAnxietyvip
· 07-18 15:28
The growth rate of TVL is quite strong.
View OriginalReply0
BlockchainBouncervip
· 07-18 15:27
The lock-up position value is good.
View OriginalReply0
NFTRegretDiaryvip
· 07-18 15:14
The prospects look good.
View OriginalReply0
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