Many people wonder why emerging public chains like @Sui network perform so well. In my opinion, the pullback is just a superficial phenomenon. The reason behind it lies in the unique "blood advantage" of the Move public chain and the new DeFi ecology that is expected to explode. Why? Next, I will briefly analyze the advantages of the Move-based public chain, and take the two major projects of the Sui ecosystem: Longyi@Scallop Lend and Longer@NAVI Protocol as examples to explore the possibility of an ecological explosion on the Sui chain.
Solidity language is a common language for building various types of smart contracts on Ethereum and has a large developer base; Move language, as a latecomer, has obvious advantages in resource processing, security and modularity, and is especially suitable for financial applications. .
The Move language introduces a resource model, and each Object is regarded as a unique entity, making it more secure; 2) Move provides a strict type system and ownership model, which helps to monitor and prevent various vulnerabilities at compile time, which is particularly suitable for Process complex financial transactions; 3) Move supports a high degree of modularity and composability, allowing developers to create interoperable modules and libraries.
In general, the Move language has extremely strong security, scalability and efficient state management features. It is an underlying language natively suitable for DeFi financial products. This is the key to the Move public chain being popular in the market in this round of trends. It can be called a unique "blood advantage". However, whether the Move public chain can prove its market potential, the rise of the public chain Token $SUI must There is a strong ecology to support it, otherwise it will be a castle in the air.
Next, I screened @Scallop Lend, which ranks first in TVL, and @Navi Protocol, which ranks second on the Sui ecological chain on DefiLlama. Let’s judge whether the new DeFi ecology on Sui is likely to explode?
-@Scallop Lend
1) Innovative model: Scallop currently has a TVL of 63.5M and adopts the Compound V3+ Solend V2 model, which isolates the asset pool and mortgage pool, and cannot recycle loans, ensuring that users can withdraw collateral at any time, with high security;
2) Product features: 1. Using the SUI network features to provide users with main accounts and sub-accounts to facilitate asset isolation and portfolio management; 2. Inherited from Scallop Tool, users can easily complete multiple transactions on one interface; 3. The interface displays rich information and can serve professional users based on the SDK.
It is worth mentioning that the account separation feature is that SUI adopts the account model unique to the Move language, centered on the object object. Different from the EVM's feature of managing "balance", object can manage specific objects, such as the Sui homogeneous token, which can manage the transfer, issuance, destruction of Sui in a global state, as well as the interaction records between Sui and all addresses. Therefore, it is absolutely no problem for users to set up multiple accounts to manage assets. The Sui object will clearly record and manage the status of a user's multiple accounts.
3) DeFi complexity design: 1. Scallop implements a three-line dynamic interest rate model on over-collateralized lending, optimizing interest rate stability; 2. Scallop is highly scalable, and users can get corresponding sCoins when performing mortgages, and sCoins are It can flow into income aggregators as derivatives and circulate. Currently, many income aggregators have accessed Scallop-based liquidity, such as Typus and Kai Finance; 3. Scallop adopts a decentralized security oracle mechanism and uses scalable The multi-oracle consensus strategy increases attack costs, effectively avoids price manipulation attacks, supports multiple oracles such as Pyth, Switchboard, and Supra Oracle, and fully utilizes the composability of Sui Move;
Just to give a special example: Every year on Ethereum DeFi, due to the depth of various AMM trading pools and the inability of oracles to correctly weigh price feeds based on time and transaction volume, there are a large number of price manipulation attacks. Many people even think that these are still legal. Controllable arbitrage. In the Sui ecosystem, strong modularity and composability can help it reduce such problems.
-@Navi Protocol
1) Basic model: Navi’s current TVL is 54M, which is a one-stop liquidity protocol based on Aave V3. It can be used for recurring borrowing and lending, which can make the utilization of funds more efficient, and the corresponding potential risks will also increase;
2) Product features: 1. Leverage vault, automated leverage, users can repeatedly borrow assets to go short or long, avoiding multiple repeated operations; 2. Isolation mode, also based on the characteristics of Sui Move, new assets will be voted on in governance Go online after approval; 3. The design is simple and user-friendly for beginners.
It should be noted that automated leverage can be realized, and thanks to the language features of Move, users can accurately authorize a specific Token to a smart contract without worrying about other assets being illegally accessed. In addition, the smart contract can be based on the set logic. and rules, perform multiple repeated operations on the lending Token, and manage the status in real time during the process, thereby realizing automated leverage. If automation is to be implemented in the EVM system, an approve operation is required, which may easily lead to security risks. However, once the right to use the object is granted in move, there is no need to re-authorize each transaction.
3) The exclusive features of DeFi can achieve low annual interest rate asset lending and relatively high mining returns. This is actually due to its efficient application of the native asset Token model. Users can get discounts on borrowing fees by pledging native assets. In addition, NAVI continues to use Curve’s Ve model has been replaced, allowing its veNAVI to function efficiently in user voting, LP pool incentives, etc. In addition, NAVI uses a single oracle in its oracle design, which is highly efficient but has certain risks similar to those in an EVM environment. It may not be as effective as a combination of multiple oracles in dealing with price manipulation.
that's all
I try my best to let everyone feel the difference between a DeFi protocol in the EVM environment and the Move environment through the two DeFi Lending products on Sui. Generally speaking, this is for the efficient application of assets and user experience of DeFi products. , safety and security have been significantly improved. However, like ZK technology, the learning cost of Move language is also high. Although the language itself has advantages in security and financial complexity, DeFi developers on Ethereum must overcome the Move language barrier and bring richer , complex financial gameplay and experience, which still requires a period of exploration.
