Leading Liquidity Protocol in the Sui Ecosystem: In-Depth Analysis of Navi Protocol

Navi Protocol, as the first native one-stop liquidity protocol in the Sui ecosystem, functions similarly to lending platforms on other public chains. Currently, the protocol offers lending services for SUI and USDC, with plans to expand to assets such as WBTC and WETH in the future. Notably, the total locked value of Navi Protocol has reached $3.18M, representing a growth of 47.62% compared to last week, accounting for 80% of the total locked value of Sui lending services. The protocol utilizes a DEX+CEX mechanism as an oracle and provides cross-chain services through Wormhole.

In terms of financing, Navi has received investment support from several well-known institutions, with the specific amount of financing yet to be disclosed.

Navi's lending service mainly targets two types of participants: depositors and borrowers. Borrowers need to provide collateral and pay interest, while depositors earn returns by depositing funds into the corresponding asset pool. The protocol's interest rates are dynamically adjusted based on fund utilization rates, and typically, the higher the fund utilization rate, the higher the interest. It is worth mentioning that the Navi protocol combines with Sui chain's decentralized central limit order book Deepbook in terms of liquidation, and this innovative design is expected to bring lower latency and gas fees.

In the future, Navi plans to launch a Pro version, which will introduce the isolation pool feature. This feature is primarily aimed at low Liquidity long-tail assets and adopts an isolation strategy that requires approval from community governance before being launched. It is expected that the isolation pool may set borrowing limits and restrictions on borrowing assets.

Although the Navi token has not yet been listed, according to the white paper, future Navi token holders will be able to participate in staking, governance voting, and receive a portion of the protocol's revenue. In addition, staking Navi tokens may also bring additional rights such as voting rights for fund pool revenue distribution and discounts on DEX trading.

Overall, although Navi Protocol has not made revolutionary innovations in the lending protocol framework, its isolated pool system fills the gap in the market for lending of low Liquidity tokens while also ensuring security. As a major lending protocol within the Sui ecosystem, Navi has demonstrated strong competitiveness, and its future development is worth looking forward to.