The Main Liquidity Protocols in the Sui Ecosystem: An 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. The protocol currently primarily offers lending services for SUI and USDC, with plans to expand to assets such as WBTC and WETH in the future. It is worth noting that Navi Protocol occupies about 80% of the total locked value in the Sui lending market, with a current total locked value of $3.18M, representing a 47.62% increase from the previous week, indicating a strong upward momentum.

The protocol adopts an oracle mechanism that combines DEX and CEX, and provides cross-chain services through Wormhole. In terms of funding support, Navi Protocol has received investments from several well-known institutions, but the specific amount of financing has not been disclosed.

The lending services of Navi Protocol primarily target 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 adjustment mechanism is based on the utilization rate of funds; generally, the higher the utilization rate, the higher the interest. It is worth mentioning that Navi Protocol utilizes the CLOB (decentralized central limit order book) Deepbook of the Sui chain during the liquidation process, and this innovative design helps to reduce latency and gas fees.

In the future version of Navi Pro, the protocol plans to introduce isolation pool features. This function mainly targets collateral loans for low liquidity assets and requires community governance approval before going live. It is expected that the isolation pool may implement measures such as setting lending limits and restricting borrowed assets to control risks.

Although the Navi token is not yet listed, according to the white paper, the token will support functions such as staking, voting, and sharing part of the protocol's revenue. In addition, 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 revolutionary innovations in the lending protocol framework, its isolated pool system design fills the gap in lending for some low liquidity tokens in the market while ensuring security. As a major lending protocol in the Sui ecosystem, Navi Protocol demonstrates strong competitiveness, and its future development is worth looking forward to.