At the recent Token2049 event, the Sui Foundation made a major announcement, announcing upcoming support for native USDC on the Sui network.
Currently, NAVI is the top DeFi protocol on Sui with $120 million in USDC liquidity. This constitutes the third-largest USDC supply in the industry, behind Aave and Compound. As the first liquidity protocol on Sui, NAVI will integrate Circle’s native USDC asset on day one.
As more and more blockchain networks adopt USDC (Sui is the latest to join), the role of permissionless composability, one of the fundamental principles of Web3, becomes increasingly important. This principle drives the rapid expansion of new applications and blockchain networks by leveraging existing open technologies.
Circle’s USDC stablecoin is integrated directly into the Sui network, increasing capital efficiency and improving user experience in multiple dimensions.
This milestone strengthens Sui’s position in the blockchain industry, and NAVI will fully support native USDC by providing a suite of migration capabilities and a capital-efficient native USDC liquidity pool.
Native USDC and bridged USDC on Sui
Native USDC has distinct advantages over bridged USDC (wUSDC). Native issuance guarantees that the assets are fully reserved and can always be redeemed 1:1 for USD. This adds a layer of trust for developers and users who can rely on the integrity of the underlying assets.
Bringing native USDC to the Sui network simplifies the transaction process and enhances liquidity within the ecosystem. Users can now access USDC directly on Sui, which simplifies workflow and increases overall value for participants.
Additionally, by adopting the Cross-Chain Transfer Protocol (CCTP), users can eliminate the delays typically associated with bridge withdrawals, establishing a new standard for blockchain efficiency.
Native USDC available on NAVI
In order to provide the highest level of asset composability on the Sui network, the NAVI protocol will fully integrate native USDC as a lending liquidity pool. As part of a broader ecosystem initiative, NAVI aims to incentivize users to transition from bridging USDC to fully adopting native USDC.
To facilitate this transition, NAVI will launch a number of in-app features designed to ease the transition, including native USDC liquidity support, flash loan functionality, and other features. A comprehensive migration plan will be announced in the coming days, outlining the steps required for a seamless transition.
This complete migration will significantly improve the user experience and promote wider adoption of the Sui ecosystem.
in conclusion
The introduction of native USDC on Sui represents a significant upgrade to the bridge version, providing enhanced functionality and a superior user experience.
NAVI Protocol is committed to providing the best lending experience, which includes the integration of native USDC, which is fully backed by the US dollar and redeemable at a 1:1 ratio. The upcoming migration plan is expected to accelerate the adoption of native USDC, thereby promoting the growth and improvement of the Sui DeFi ecosystem.
