Leading Liquidity Protocol in the Sui Ecosystem: In-Depth Analysis of Navi Protocol

Navi Protocol, as the first native one-stop liquidity protocol on the Sui ecosystem, provides users with comprehensive lending services. The protocol currently supports lending services for SUI and USDC, with plans to expand to assets such as WBTC and WETH in the future. As a leader in the Sui ecosystem, Navi Protocol's total locked value has reached $318 million, an increase of 47.62% compared to last week, capturing 80% of the market share for Sui lending services.

On a technical level, Navi Protocol adopts a combination of DEX and CEX oracle mechanisms and provides cross-chain services through Wormhole. This innovative technical architecture offers users a safer and more efficient lending experience.

The core functions of the protocol include two main aspects: deposits and loans. Depositors earn returns by depositing funds into the corresponding asset pool, and these returns mainly come from the interest paid by borrowers. Borrowers need to deposit a certain amount of collateral and pay interest to obtain a loan. The system dynamically adjusts the interest rates based on the utilization of funds; generally, the higher the utilization of funds, the higher the interest rate.

It is worth noting that Navi Protocol has unique features in its clearing mechanism. It utilizes the CLOB (Centralized Limit Order Book) Deepbook of the Sui chain for clearing, and this innovative design significantly reduces latency and gas fees, improving overall efficiency.

In the future, the Navi Protocol plans to launch a Pro version, which will introduce the isolated pool feature. This feature is mainly aimed at collateral loans for low Liquidity assets, using an isolation strategy that requires community governance approval before going live. This design helps to balance risk and innovation, providing lending services for more types of assets.

Although the Navi token has not yet been listed, according to its white paper, future holders of Navi tokens will enjoy multiple rights, including staking, voting, and sharing protocol profits. In addition, staking Navi tokens will also grant holders voting rights on the distribution of the liquidity pool profits and privileges such as discounts on DEX trading.

Overall, while the Navi Protocol does not have disruptive innovations in its overall framework, as a leading lending protocol in the Sui ecosystem, it has already demonstrated strong competitiveness. In particular, its design of the isolation pool system provides a solution for the lending needs of low Liquidity tokens, while also ensuring security. With the continuous development of the Sui ecosystem, the Navi Protocol is expected to achieve greater breakthroughs and growth in the future.