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

Navi Protocol, as the first native one-stop Liquidity protocol in the Sui ecosystem, provides users with a variety of lending services. Currently, the protocol mainly supports lending services for SUI and USDC, and plans to expand to assets such as WBTC and WETH in the future.

As of now, the total locked value of the Navi Protocol has reached 3.18 million USD, a 47.62% increase compared to last week, accounting for 80% of the total locked volume in Sui ecosystem lending services. This protocol uses a combination of DEX and CEX oracle mechanisms and provides cross-chain service capabilities.

In terms of lending services, Navi Protocol mainly targets two types of participants: depositors and lenders. Lenders need to provide sufficient collateral and pay interest, while depositors earn returns by depositing funds into the corresponding asset pool. The interest rate adjustment mechanism is 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 will utilize the CLOB (decentralized central limit order book) Deepbook on the Sui chain during the liquidation process, and this innovative design is expected to bring lower latency and gas fees.

In the future, Navi Protocol plans to launch a Pro version, which will include the isolated pool feature. This feature mainly targets long-tail assets with low Liquidity, employing an isolation strategy to manage risks. The launch of the isolated pool requires approval through community governance and may set measures such as borrowing limits and restrictions on borrowing assets.

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

Overall, while Navi Protocol has not made disruptive innovations to mainstream lending protocols in its overall framework, its isolated pool design fills the market gap for lending low liquidity tokens while also ensuring the security of the protocol. As a key lending protocol in the Sui ecosystem, Navi Protocol demonstrates strong competitiveness, and its future development is worth looking forward to.