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

Navi Protocol, as the first native one-stop liquidity protocol in the Sui ecosystem, functions similarly to Aave. The protocol primarily offers lending services, currently supporting SUI and USDC, with plans to expand to assets like WBTC and WETH in the future. Navi Protocol's total locked value has reached $3.18M, with a week-on-week growth of 47.62%, capturing 80% of the Sui lending service market share. The protocol utilizes a DEX+CEX mechanism as an oracle and provides cross-chain services through Wormhole.

In terms of financing, Navi has received investment support from several well-known institutions, but the specific amount raised has not been disclosed.

Navi's lending service primarily targets two types of participants: depositors and borrowers. Borrowers need to provide collateral and pay interest, while depositors earn returns by depositing funds. The protocol's interest rates are dynamically adjusted based on the utilization rate of funds; generally, the higher the utilization rate, the higher the interest. Notably, the Navi protocol will utilize Sui chain's CLOB (decentralized central limit order book) Deepbook during the liquidation process, which is expected to bring lower latency and gas fees.

In the future, Navi plans to launch a Pro version, which will introduce the isolation pool feature. This feature is mainly aimed at long-tail assets with low liquidity and will require community governance approval before going live. It is expected that the isolation pool may implement measures such as setting borrowing limits and restricting borrowing assets to manage risks.

Although the Navi token has not been listed yet, according to the disclosures in the white paper, future token holders will be able to participate in staking, governance voting, and obtain a portion of the protocol revenue. In addition, staking Navi tokens will also grant voting rights for pool revenue distribution and DEX trading discounts.

Overall, although the Navi Protocol has not made disruptive innovations to mainstream lending protocol models, its isolation pool system fills the gap in lending for low liquidity tokens in the market while also ensuring security. As a key lending protocol in the Sui ecosystem, Navi has shown strong competitiveness and development potential. With the continuous development of the Sui ecosystem, the Navi Protocol is expected to occupy a more important market position in the future.