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, is rapidly rising to become a leader in this field. This protocol offers lending services similar to Aave and currently mainly supports SUI and USDC, with future plans to expand to assets like WBTC and WETH.

Recently, the total locked value of Navi Protocol reached 3.18 million USD, an increase of 47.62% compared to last week, accounting for 80% of the total locked value of lending services in the Sui ecosystem. This astonishing growth rate highlights its strong performance and user recognition in the market.

The protocol adopts a DEX+CEX mechanism as its oracle and provides cross-chain services through Wormhole, further enhancing its functionality and interoperability.

In the lending service, Navi Protocol has two main participants: depositors and lenders. Lenders need to provide collateral and pay interest, while depositors earn returns by depositing funds. The protocol's interest rate mechanism dynamically adjusts based on the utilization rate of funds, ensuring efficient market operation.

It is worth noting that Navi Protocol has its unique features in its settlement mechanism. As a protocol built on the Sui chain, it utilizes a decentralized central limit order book (CLOB) Deepbook integrated with Sui for settlement, which can significantly reduce 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 mainly aimed at low Liquidity long-tail assets and adopts an isolation strategy that requires community governance approval before going live. This design helps balance risk and innovation.

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

Overall, while Navi Protocol has not made disruptive changes to mainstream lending protocol models, its isolation pool system fills the gap in the market for lending low liquidity tokens while also ensuring security. As a leading lending protocol within the Sui ecosystem, Navi Protocol demonstrates strong competitiveness and development potential. With the continuous development of the Sui ecosystem, Navi Protocol is expected to play a more important role in the future.