The liquidity in the Sui currency market is tight! The utilization rate of mainstream lending protocol USDC is 100%, and users cannot withdraw.

Sui Decentralized Finance is facing severe challenges, with TVL collectively flowing out.

According to DeFiLlama data, the TVL of DeFi protocols on the Sui chain has been cut in half over the past month. In addition to a large outflow following the Momentum airdrop, the mainstream lending protocol NAVI has lost 24%, SuiLend has lost 40%, and Scallop has lost 45%. Furthermore, protocols such as Haedal, Bluefin, and Cetus have also experienced TVL losses ranging from 40% to 50%, indicating a collective outflow of funds from DeFi on the Sui chain.

Mainstream lending agreements face tight supply and demand for USDC, making it difficult for users to withdraw tokens.

Both NAVI and SuiLend lending protocols have a combined TVL of over $130 million, accounting for 75% of the on-chain TVL. Before the deadline, the USDC usage rate of the two major protocols skyrocketed to 100%, which means that unless borrowers repay or more liquidity flows in, users providing USDC liquidity will not be able to withdraw.

Currently, the annual interest rate for NAVI loans is about 56%, while SuiLend is 11%. Borrowers have to bear high interest costs before repaying. At the same time, NAVI offers 47% annually and SuiLend offers 9% to encourage more people to deposit USDC.

NAVI USDC Usage Rate SuiLend USDC Usage Rate

Another lending protocol Scallop USDC utilization rate 76%, still operating normally. The common point of the first two is that they both support the explosive $deUSD Sui with investment issuer Elixir(. Initially suspected whether it was similar to the USDX case, after Elixir abandoned ) and pledged $deUSD to lend $USDC. After all, $deUSD on Sui still maintains 0.99, while the Ethereum chain has already been severely dragged down.

$deUSD Stream confirms insolvency! On-chain stablecoin chain reaction: Elixir abandons deUSD, USDX decouples to 0.5(

However, further examining NAVI, it has already stopped listing $sdeUSD, and the Elixir Market TVL of SuiLend is about 4000 USD, which is basically of no use.

This article Sui currency market liquidity is tight! The mainstream lending protocol USDC usage rate is 100%, and users are unable to withdraw, first reported by Chain News ABMedia.