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, provides users with lending services similar to Aave. Currently, the protocol mainly supports lending services for SUI and USDC, with plans to expand to assets such as WBTC and WETH in the future.

Recently, the total locked value of Navi Protocol reached $3.18M, an increase of 47.62% compared to last week, capturing 80% of the Sui lending service market. The protocol uses a DEX+CEX mechanism as an oracle and provides cross-chain services through Wormhole.

In terms of funding support, Navi has received investments from several well-known institutions, but the specific amount of financing has not been made public.

Navi's lending service is mainly aimed at two types of participants: depositors and borrowers. Borrowers need to provide collateral and pay interest, while depositors earn returns by depositing assets. The interest rate adjustment mechanism of the protocol is based on the utilization rate of funds; generally, the higher the utilization rate, the higher the interest. It is worth noting that the Navi protocol will utilize Sui chain's CLOB (Decentralized Central Limit Order Book) Deepbook during the liquidation process. This innovative design is expected to bring lower latency and gas fees.

In the future, Navi plans to launch a Pro version, which will include the isolated pool feature. This feature is mainly aimed at the collateralization of low Liquidity assets and will require community governance approval before going live. It is expected that the isolated pool may implement measures such as setting lending limits and restricting lending assets.

Although the Navi token has not yet been listed, according to the white paper, future holders of the Navi token will be able to participate in staking, voting, and sharing a portion of the protocol's profits. In addition, staking Navi tokens may also grant voting rights for pool profit distribution and discounts on DEX trading.

Overall, although Navi Protocol has not made significant innovations to the mainstream lending protocol model, its isolated pool system fills a gap in the market for lending low Liquidity tokens while ensuring security. As the main lending protocol in the Sui ecosystem, Navi demonstrates strong competitiveness, and its future development is worth continuous attention from the market.