Interpretation of NAVI Protocol: The native token will be launched soon, and Sui Ecosystem will become the leading DeFi protocol with the highest TVL

Focusing on LST, a 100-billion-level track, the native token will be launched soon, helping the project reach new heights.

Written by: Shenchao TechFlow

When it comes to the ecological cornerstone of the public chain, DeFi is the best choice.

It can be said that the modern financial trading system is constantly evolving and innovating around “improving market transaction liquidity”. Under such a premise that “those who gain liquidity win the world”, DeFi is a container for revitalizing liquidity, and among them: lending connects the supply and demand of tokens through smart contracts, and LSTFi (Liquid Stake Token Finance) can both release Capital liquidity can also achieve stable and diversified returns. The two are not only the track for hundreds of billions of business volume in the minds of countless people, but also the top priority of the public chain ecological construction.

In fact, the rise of an excellent DeFi project can indeed feed back the development of public chains to a large extent. As early as the 2020 DeFi Summer period, the innovative explosion of lending protocols such as MakerDAO, Aave, and Compound further consolidated Ethereum’s “King of Public Chains” ” status, Lido has since launched a blockbuster Ethereum LST craze. There are countless such cases, and they all seem to confirm the importance of DeFi to the ecological development of public chains.

At the moment of Niu Chu, as new public chains such as SOL, AVAX, and SUI are experiencing strong growth, a new round of “narrative of the rise of new public chains” is brewing. Among them, Sui, one of the “Move Twins”, relies on its outstanding technical advantages, The shining financing/team background and immeasurable ecological explosion potential are themselves excellent investment targets in the competition of new public chains in the eyes of many people.

Since the beginning of the year, the Sui ecosystem’s native DeFi protocol NAVI Protocol has shown strong momentum of development. Not only did its TVL increase by 80% in half a month, it became the Sui ecosystem’s Top 1 DeFi project. It also announced the acquisition of the Sui ecosystem’s leading liquidity staking protocol Volo to seize LSTFi. market, further laying the foundation for the development of “Sui Ecological One-stop Liquidity Protocol”. Following market rules and past experience, NAVI Protocol’s feedback on the Sui ecosystem also makes more people have more expectations for Sui and its native lending protocol NAVI Protocol.

This article aims to introduce the NAVI Protocol, the leading project of Sui ecology, and briefly analyze the competitive landscape of new public chains and DeFi in the new round of bull market through the elaboration of project advantages, recent measures of the project and the mutual achievements between DeFi projects and new public chains. future trends.

NAVI: Sui ecological DeFi pearl, TVL surged by 80% at the beginning of the year and exceeded 100 million

Many people have paid attention to the amazing growth rate of NAVI Protocol since the beginning of the project: two weeks ago, NAVI’s TVL just exceeded 60 million US dollars, and in just two weeks, TVL has exceeded 100 million US dollars, an increase of 80% in half a month. Lending traffic reached US$40 million, accounting for 66% of Sui’s entire network.

However, after checking the data, we found that NAVI has maintained such an astonishing growth rate since its launch: just six months after its launch, NAVI has attracted 76+ million users, and is the first batch to settle in the OKX DeFi wallet and establish deep ties with OKX Collaborative projects.

Image source: naviprotocol.io

Behind the outstanding results, the NAVI project brings together the advantages of time, location, people and people:

As the first native liquidity infrastructure in the Sui ecosystem, many people regard NAVI as the AAVE 2.0 version in the Sui ecosystem. The project provides users with a liquidity platform through mechanisms such as over-collateralization, dynamic interest rates, and health coefficients. The entrance for providers or borrowers to participate in the Sui ecosystem: Liquidity providers provide assets to the protocol and earn the income provided by NAVI; borrowers can lend different assets through NAVI, thereby improving fund utilization.

In terms of timing: With the BTC halving approaching and the launch of Bitcoin spot ETFs, the encryption market in 2024 has become a “clear bull market” in the eyes of many institutions. Facing the DeFi track, which is known as the engine of the bull market, users who have been dormant for a long time are already gearing up. For a DeFi project that was born in Xiong Mo Niu Chu and has completed the first round of funding and user accumulation, it is undoubtedly switching to the fast lane for development. the best time.

Geographical advantages: As the Sui ecological DeFi project officially invested and incubated by Mysten Labs, on the one hand, Sui’s high performance can bring a silky smooth experience to its ecological products, on the other hand, Sui attaches great importance to and invests in the DeFi sector to a certain extent. to promote the rapid development of NAVI. According to data on the chain, in the Liquidity Xplorer, a liquidity incentive plan jointly launched by NAVI and the Sui Foundation, Sui officials have allocated 15 million US dollars in Sui as early deposit income in the past 6 months, and users’ APY income is as high as 20 %+, driven by revenue, more users are attracted to participate in NAVI lending.

The advantages in people and people come from the NAVI team’s own strong product innovation capabilities and market operation capabilities.

In terms of product innovation capabilities, the development of DeFi projects has no more than three aspects:

• Improve capital efficiency
• Ensure the safety of funds
• Optimize user experience

“Leverage Vault” is a concentrated expression of NAVI’s improvement of capital efficiency through innovative product design: the automated leverage function caters to users’ needs to repeatedly borrow assets to further improve capital utilization, and the operation is simple and intuitive; low annual interest rate asset lending, high-amount mining The leverage strategy of mine returns and native APY assets (liquid pledged assets and LP tokens) also further releases capital efficiency and improves user income.

In terms of ensuring the safety of funds, NAVI, which adopts the over-collateralization model, implements a multi-dimensional security strategy: the introduction of the concept of health factor (Hf) clearly and intuitively shows users their lending risks; the innovative “isolation mode” requires that new assets can only pass through NAVI Mortgage can only be carried out after governance approval, and the system further ensures that users can participate in new trading opportunities with minimal risk; in addition, NAVI has also made great efforts in user product experience, and cooperated with Notifi to launch a 24-hour notification function to help users grasp market fluctuations in real time and make timely decisions.

In terms of optimizing user experience, NAVI has always adhered to the development principle of user needs and launched a series of practical functions: the reward management page allows users to manage and receive rewards on one page; the Leaderboard function allows users to earn points by interacting with the protocol. It seems Another short-term preparation; the transaction history function allows users to easily check all interactions with the NAVI protocol in just a few clicks; the lending pool is incentivized to further promote the flow of funds within the Sui ecosystem… More humanized features that respond to the needs of the community are in the pipeline middle.

In terms of market operation capabilities, NAVI has achieved a combination of ecological cooperation + revenue driven + active social media.

In December, OKX DeFi launched the NAVI interest rate increase event. Users who pledge SUI or USDC to NAVI on OKX DeFi can receive an additional 10% annual interest rate increase. Subsequently, NAVI cooperated with the OKX Web3 wallet to launch the EARN event to provide support for CETUS and The wETH pool provides 20% APY; in addition, NAVI has also been connected to the OKX Web3 wallet. Users can lend and borrow encrypted assets in NAVI through the OKX Web3 wallet plug-in. As a leading exchange, OKX has massive user resources, and a series of in-depth cooperation measures with OKX Web3 matrix products have also allowed a wider range of Web3 ecological users to understand NAVI.

Image source: Twitter @navi_protocol

In addition, NAVI is active in major social media, communities, and AMA front lines, and regularly holds activities such as Giveaway and X to Earn. Through fascinating content, interesting gameplay, and attractive rewards, NAVI guides users to further pay attention to the project. In the NAVI Q4 report, more than 10 community interactive activities were held in this quarter alone, and the number of Twitter fans exceeded 48,000+.

It can be said that NAVI’s outstanding market performance is a well-prepared battle. Excellent product design and solid market promotion preparations have achieved rapid growth in the past two months. Entering 2024, the project is about to usher in the launch of the hospital’s tokens, the acquisition of Volo’s in-depth layout of LST based on Sui’s eco-friendly liquidity staking protocol, and the completion of more other roadmaps. The momentum of rapid growth will only increase unabated.

Focus on the 100-billion-level track LST, the native token will be launched soon: boosting the project to reach new heights

On January 17, 2024, NAVI Protocol announced the acquisition of Volo, the leading liquidity staking agreement in the Sui ecosystem, and further upgraded the lending agreement to the “Sui ecological one-stop liquidity agreement” of lending + LSTFi, and revealed the merger and transition work It is expected to be completed within a month. After the news was announced, it stirred up waves and sparked widespread discussion in the community:

On the one hand, the strategic move of acquiring Volo is undoubtedly an added advantage for NAVI: NAVI accounts for up to 66% of the lending market in the Sui ecosystem, and according to Defillama data, Volo is among the top ten DeFi protocols in the Sui ecosystem, and even the TOP 3. The liquidity staking agreement accounts for up to 30% of the LSTFi market in the Sui ecosystem. The strong combination of NAVI and Volo, the two leading ecological projects, plays a very positive role in the development of their respective projects and even the entire Sui ecosystem.

In addition, NAVI said: After the merger, NAVI will focus on developing a set of integrated solutions to better meet the changing needs of users. This will not only help the integration and communication between the major sectors of the Sui ecological DeFi, but also rely on deeper Liquidity, flexible composability, lower staking fees and diversified incentives provide users with a better experience and can support the continued positive growth of the Sui ecosystem through advanced revenue strategies.

On the other hand, the unlimited potential of the LSTFi track has also accumulated certain chips for the development of NAVI and even Sui in this bull market: since the upgrade in Shanghai, it has been able to bring liquidity, capital efficiency, income strategies, risk management and other aspects to users. Innovative in all aspects, the LSTFi track is booming, but the general consensus beyond the prosperity is that although LSTFi, a 100-billion-level track, is still in its early stages, it has the potential to activate DeFi and gain 50+ times when a new round of bull market arrives. The growth space depends on which public chain can seize the opportunity. This is also reflected in BENQI, the leading DeFi protocol in the Avalanche ecosystem. Recently, BENQI TVL, which focuses on liquidity staking solutions, exceeded US$530 million, with an increase of more than 30% on the 30th. 50%.

Based on this background, as a leader in the new public chain competition, Sui, which is now developing rapidly, has also selected LST and regarded it as the focus of future development. The protagonist of this acquisition, Volo, is the Liquid Stake hackathon organized by the Sui Foundation. first place in. There is no doubt that the acquisition of Volo is a strong signal released by NAVI’s in-depth layout of LSTFi. In the future, NAVI will continue to make efforts in the dual tracks of lending and LSTFi, superimpose the huge potential of the LSTFi track, Sui’s emphasis on and investment in the LSTFi track, etc. Factors, I believe that NAVI may be able to make a mark on the LSTFi track like BENQI. Based on its existing outstanding results, it will further accelerate the development of the project itself and bring more possibilities to Sui.

Image source: Twitter @navi_protocol

In addition to acquisitions, the most eye-catching aspect of the NAVI project’s first quarter roadmap is the launch of native tokens.

In the current environment of Niu Chu, finding potential Alphas projects in the market is a strong demand of current users. As the absolute leading project of the much-watched Sui ecosystem, no other projects have officially announced plans to issue coins during the same period, which also means that As the leader of TVL, NAVI has become the only Sui ecological head project that will issue coins. By then, it is bound to firmly occupy the attention of the entire Sui ecosystem and even the vast majority of the DeFi community that is paying attention to the new public chain.

The practicality of NAVI native tokens is also an important reason why many people are looking forward to its launch. Token holders can pledge NAVI native tokens to gain income, obtain fee discounts, and participate in protocol governance. In addition, NAVI introduces veNAVI with reference to Curve’s Ve economy, which encourages users to pledge and hold for a long time to obtain benefits while continuing to participate in governance. This also gives many followers confidence that the project can develop in a long-term and stable manner.

It is worth noting that according to the project’s regular play style, in conjunction with the token launch, the project marketing team will launch a series of marketing initiatives to motivate users, and users who interact with the protocol are likely to receive airdrops from early supporters. Such expectations have also become Reasons to attract more people to the project.

In addition to the launch of native tokens, another highlight of NAVI in the first quarter of 2024 is to enable DAO and community governance functions, which is the key to motivating users to care about the sustainable development of the project and participate in it.

Image source: naviprotocol.io

In addition, NAVI’s work focuses mainly on functional iteration and experience optimization: on the one hand, the team will work on staking NAVI tokens into the liquidity protocol, and integrate it with the Sui Foundation Deepbook to use deep liquidity to provide Provide users with the best trading experience, and more other functions will be continuously adjusted and optimized according to market and community needs, in order to better serve users and bring a more efficient, secure, convenient and seamless DeFi experience; on the other hand, the team also We will continue to expand the service boundaries, support more chains, integrate with more projects, and launch more functions to meet user needs. At the same time, we will carry out a series of interactive and educational topics to encourage and guide users to deeply participate in projects.

As the absolute leading DeFi project in the Sui ecosystem, NAVI’s strong momentum and good expectations have also prompted many people to bet on Sui to become the vanguard of new public chain competition in the new round of bull market.

Sui ⇄ NAVI: cyclical feedback, mutual achievement, and reaching the top together

As NAVI’s TVL increased by 84.99% within 7 days, Sui’s TVL also exceeded US$370 million (including loans), with an increase of over 55% within 7 days. Compared with Aptos, which was also the “Move Twin” in the past, Sui’s TVL has exceeded Aptos by nearly three times.

Image source: defillama.com

The gratifying growth momentum presented at the same time makes it easy to see that in the process of public chain ecological construction, Sui and NAVI have gradually formed a virtuous feedback loop mechanism of mutual achievements between “public chain ⇄ projects”.

On the one hand, Sui’s own strength is like standing on the shoulders of giants for NAVI:

As we all know, Sui has been an absolute star public chain project since its birth: dissatisfied with the working environment full of restrictions, some of the technical backbones of Meta (formerly Facebook) left and established Mysten Labs, including the former Meta Crypto Evan Cheng, the head of wallet development, and Sam Blackshear, the creator of the Move language, soon after Sui came out.

Technological innovation is one of Sui’s outstanding strengths. Sui uses the native programming language Move, which is derived from the stablecoin project Diem incubated by Meta. Its powerful asset processing capabilities and access control mechanisms greatly simplify the process of digital assets and transaction management, while putting security first. Sui also allows validators to adjust computing resources on demand, greatly enhancing the network’s horizontal scalability. In addition, the “Byzantine fault-tolerant consensus” adopted by Sui promotes high transaction throughput and low latency. This not only enables large-scale transaction processing, but also ensures almost instant transaction confirmation and strong security.

Technological innovation that better meets financial needs + a star-studded founding team have made Sui a hit once it was launched, and it has also attracted the favor of top investment institutions. On September 8, 2022, Mysten Labs completed a new round of financing, successfully raising US$300 million. Participating institutions include industry giants such as Binance Labs, Coinbase Ventures, and Andreessen Horowitz (a16z).

As the leading DeFi project in the Sui ecosystem, NAVI can not only rely on Sui’s technical advantages to create a seamless and secure experience for users, but also enjoy financial, technical, and promotional support in its development process: Sui’s founding team Mysten Labs not only After investing in NAVI, the Sui Foundation teamed up with NAVI to carry out a series of user incentive activities.

Image source: naviprotocol.io

In fact, Sui’s existing advantages in capital, technology, and traffic, which have been accumulated in the Niuchu environment, are not limited to the DeFi sector. Looking at the Sui ecological landscape, it covers multiple tracks such as NFT, GameFi, AI, and social networking. The Web3 ecological network has gradually become clear.

Image source: Twitter @SuiEcoNews

It is not difficult to see that as a new public chain project that has attracted much attention, Sui’s gratifying growth momentum also gives it a certain first-mover advantage in the upcoming new round of new public chain battles. With the arrival of a new round of bull market and the influx of more users, developers, and funds, NAVI, as the leading DeFi project, will undoubtedly continue to reap more dividends from the continued development and growth of the Sui ecosystem.

It is undeniable that Sui’s incubation of NAVI has largely contributed to NAVI’s rapid development, but this support has also allowed Sui to receive multi-dimensional positive returns from NAVI such as funds, users, and reputation:

Judging from on-chain data, whether it is on-chain address or TVL, the growth of NAVI is positively correlated with the growth of Sui. The rise of NAVI has also helped Sui pass the market’s test of Sui’s ecological infrastructure construction to a certain extent. Because of NAVI’s outstanding performance, more talents further believe that Sui can serve as a high-liquidity head DeFi Ecological stability exists for a long time.

Once this mutual achievement relationship between the public chain and the project is established, the absorbed funds and flows will form a virtuous and efficient cycle within the ecosystem. Both the public chain and the project will usher in an upward spiral development trend.

In the foreseeable future, relying on the virtuous feedback loop mechanism of mutual achievements between “public chains⇄ projects” mentioned above, both NAVI and Sui will continue to benefit from it, and this aspect will further promote NAVI is moving towards DeFi, the industry leader. On the other hand, it will also help Sui occupy an important position in this round of new public chain separatist war.

Conclusion

Currently, according to Defillama data, NAVI Protocol is already the TOP 1 DeFi project in the Sui ecosystem, but the community’s imagination of the project does not stop there.

You must know that the current TVL of NAVI is around US$100 million, which is only a mid-level level in the entire DeFi track. Regardless of the project background, innovation capabilities, product quality or future expectations, if nothing unexpected happens, NAVI is completely It has the ability to launch an impact on projects with 1 billion TVL, 2 billion TVL and even the forefront of the DeFi track.

In addition, the community’s confidence in the project also comes from the health of the project itself in terms of liquidity:

According to the NAVI points ranking, 50% of NAVI’s liquidity providers are mainly distributed in the range of 5,000-80,000, and the top 15 large players only provide more than 1 million liquidity. Among the 100 million U.S. dollars of liquidity, each user provides an average of nearly 1,000 U.S. dollars worth of liquidity, which is enough to demonstrate that NAVI’s liquidity is highly dispersed and the system risk is very low. It also lays a solid foundation for the safe and stable operation of NAVI in the future. .

Image source: Navi Protocol

As for Sui, it is currently ranked 13th in the ranking of new public chains. This is also a position that allows the community to have great imagination for Sui. There is no other reason. Whether it is technology, funds or community voice, Sui has It is a project that has all the characteristics of a leading new public chain project, and it has gained momentum recently. Currently, the gap with the new public chains above is not very big.

Image source: Twitter @SuiNetwork

Of course, whether NAVI, whose native token is about to be launched, can make a splash in the DeFi track, or whether Sui, whose ecological construction is gradually taking shape, can stand out in the competition of new public chains, the performance of both in 2024 cannot be underestimated. The market We are also happy to witness this model of mutual success between public chains and projects, and establish a new paradigm of positive ecological and healthy development in the process of common growth.