The Rising 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. This protocol offers services similar to mainstream lending platforms and currently mainly supports lending services for SUI and USDC, with plans to expand to assets like 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, accounting for 80% of the total locked value of borrowing services in the Sui ecosystem. This protocol uses a DEX+CEX oracle mechanism and offers cross-chain services.

In terms of financing, Navi has received support from several well-known institutions, although the specific amount of financing has not been disclosed.

Navi's lending service is primarily aimed at 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 liquidity utilization rate; generally, the higher the liquidity utilization rate, the higher the interest.

It is worth noting that the Navi protocol has made innovations in its clearing mechanism. It will utilize the CLOB (decentralized central limit order book) Deepbook of the Sui chain for clearing, which can provide lower latency and lower gas fees.

In future versions of Navi Pro, the protocol plans to introduce isolated pool functionality. This feature is mainly aimed at long-tail assets with low liquidity and adopts an isolation strategy, requiring community governance approval to go live. It is expected that the isolated pool may set borrowing limits and restrict lending assets.

Although the Navi token has not yet been listed, according to the white paper, future token holders will be able to participate in staking, governance voting, and share in a portion of the protocol's revenue. Staking Navi tokens will also grant holders voting rights on the allocation of the liquidity pool and discounts on DEX trading.

Overall, although Navi Protocol has not made disruptive innovations to the traditional lending protocol model, its isolation pool system fills the market demand for lending low Liquidity tokens while ensuring security. As a major lending protocol in the Sui ecosystem, Navi has demonstrated strong competitiveness, and its future development is worth looking forward to.