Leading Liquidity Protocol in the Sui Ecosystem: Navi Protocol

Navi Protocol is the first native one-stop Liquidity protocol in the Sui ecosystem, providing users with lending services. Currently, the protocol supports lending services for SUI and USDC, with plans to expand to assets such as WBTC and WETH in the future.

As an important participant in the Sui ecosystem, the total locked value of Navi Protocol has reached $3.18 million, an increase of 47.62% compared to last week, accounting for 80% of the total locked value of Sui's lending services. This protocol adopts a DEX+CEX mechanism as an oracle and provides cross-chain services through Wormhole.

In terms of lending services, the Navi Protocol primarily involves two types of participants: depositors and lenders. Lenders need to provide collateral and pay interest, while depositors earn returns by depositing funds into the corresponding asset pool. The interest rate is 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 settlement mechanism. It will utilize the decentralized central limit order book (CLOB) Deepbook of the Sui chain for settlement, which can provide lower latency and lower gas fees.

In the future, the Navi Protocol plans to launch a Pro version, which will include the isolation pool feature. These isolation pools are primarily aimed at long-tail assets with low liquidity and require community governance approval before being launched. It is expected that the isolation pools may implement measures such as setting borrowing limits and restricting borrowing assets.

Although the Navi token has not been listed yet, according to the white paper, the token will support functions such as staking, voting, and protocol revenue distribution. Staking Navi tokens will also grant voting rights for asset pool revenue distribution and discounts on DEX trading.

Overall, although Navi Protocol has not made disruptive innovations to mainstream lending protocol models, its isolation pool system fills a gap in the market for lending low liquidity tokens while also considering security. As the main lending protocol in the Sui ecosystem, Navi Protocol has demonstrated strong competitiveness, and its future development is worth looking forward to.