The First One-Stop Liquidity Protocol in the Sui Ecosystem: In-Depth Analysis of Navi Protocol

Navi Protocol, as the first native one-stop liquidity protocol in the Sui ecosystem, functions similarly to Aave on Ethereum. The protocol currently mainly provides lending services for SUI and USDC, with plans to expand to assets like WBTC and WETH in the future. It is worth noting that the total value locked in Navi Protocol has reached $3.18M, an increase of 47.62% compared to last week, accounting for 80% of the total value locked in Sui's lending services, demonstrating a strong growth momentum.

In terms of technical implementation, the Navi Protocol employs an oracle with a DEX+CEX mechanism and offers cross-chain services supported by Wromhole. The lending service model of the protocol is similar to traditional lending platforms, involving two main participants: depositors and borrowers. Borrowers need to provide collateral and pay interest, while depositors earn returns by depositing assets. The interest rate adjustment mechanism of the protocol is based on capital utilization rate; generally, the higher the capital utilization rate, the higher the interest rate.

Navi Protocol has made innovations in its clearing mechanism. Built on the Sui public chain, the protocol will utilize the decentralized central limit order book Deepbook in the Sui ecosystem for clearing, a design that is expected to bring lower latency and lower gas fees.

In the future, Navi Protocol plans to launch a Pro version, which will include the isolation pool feature. This function mainly targets long-tail assets with low Liquidity and adopts an isolation strategy, requiring community governance approval before going live. It is expected that the isolation pool may set lending limits and restrict lending assets, among other measures, to balance risk and return.

Although the Navi token is not yet listed, according to its white paper, future token holders will enjoy multiple rights, including staking, participating in governance votes, and sharing a portion of the protocol's revenue. In addition, staking Navi tokens may also provide voting rights for pool revenue distribution and discounts on DEX trades.

Overall, while Navi Protocol does not have groundbreaking innovations in its overall framework, its isolation pool system fills the market demand for low Liquidity token lending while ensuring security. As a major lending protocol within the Sui ecosystem, Navi Protocol demonstrates strong competitiveness. With the continuous development of the Sui ecosystem, Navi Protocol is expected to gain greater growth potential in the future.