The Rising Liquidity Protocol in the Sui Ecosystem: An Analysis of Navi Protocol

Navi Protocol, as the first native one-stop liquidity protocol in the Sui ecosystem, is rapidly rising. The protocol offers lending services, currently supporting SUI and USDC, with plans to expand to assets like WBTC and WETH in the future. Navi Protocol's total locked value has reached $3.18M, a 47.62% increase from last week, capturing 80% of the market share in Sui's lending services. The protocol uses a DEX+CEX mechanism as an oracle and provides cross-chain services.

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

Navi's lending services are primarily aimed at two types of participants: depositors and lenders. Lenders need to provide collateral and pay interest, while depositors earn returns by depositing assets. The protocol's interest rates are dynamically adjusted based on the utilization rate of funds; generally, the higher the utilization rate, the higher the interest. It's worth noting that Navi's clearing mechanism differs from other on-chain lending protocols. It utilizes the CLOB (decentralized central limit order book) Deepbook on the Sui chain for clearing, a design that helps reduce 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 long-tail assets with low liquidity, using an isolation strategy that requires community governance approval before it can go live. It is expected that the isolation pool may set borrowing limits, restrict borrowing assets, and other measures.

Although the Navi token has not yet been listed, according to the disclosures in the white paper, the token will support functions such as staking, voting, and sharing protocol revenue in the future. Staking Navi tokens will also grant holders voting rights on pool revenue distribution, as well as benefits for DEX trading.

Overall, while Navi Protocol has not made disruptive innovations to mainstream lending protocol models, its isolated pool design fills the gap in the market for low liquidity token lending while also ensuring security. As a major lending protocol within the Sui ecosystem, Navi demonstrates strong competitiveness and development potential. With the continuous growth of the Sui ecosystem, the future development of Navi Protocol is worth looking forward to.