NAVI is a one-stop liquidity protocol native to Sui. It enables users to participate in the Sui ecosystem as a liquidity provider or a borrower. Liquidity providers provide assets to the market and earn passive income through yield, while borrowers have the flexibility to obtain loans on different assets. Navi focuses on providing the necessary DeFi infrastructure and aims to become a key player in the rapidly growing DeFi world in the Sui ecosystem.
On the afternoon of February 4, Charles, the founder of NAVI, was a guest in the Planet Super Topic Community and started an AMA with the theme of "SUI ecosystem explosion, NAVI, which has jumped to the first place in TVL, starts IDO".
Charles said: "On the basis of asset security, NAVI will expand new long-tail assets to enrich the Sui ecosystem. IDO is just a starting point for us. NAVI will continue to work hard on Sui with our NAVX tokens and a new economic model, and give a satisfactory answer to all supporting partners."
The following is the Q&A transcript:
Odaily Planet Daily: NAVI’s TVL has experienced explosive growth since November last year. Can you tell us about the features of its lending design?
Charles: Since November last year, the TVL of the NAVI protocol has indeed experienced rapid growth. NAVI is a protocol with extremely high capital utilization efficiency. Our current TVL is US$160 million, and US$60 million of assets have been lent. Mainly due to its unique lending design. A distinctive feature of the NAVI protocol is its highly modular architecture, which is built on the Move language and provides a combination of flexibility and security. This design allows the NAVI protocol to easily integrate new features and assets while ensuring the protocol is robust and scalable.
Odaily Planet Daily: Features of NAVI’s lending module include support for some long-tail assets, including CETUS, vSUI, etc. Are there plans to expand the list of long-tail assets to a certain extent?
Charles: NAVI does support a range of long-tail assets, such as CETUS, vSUI, and haSui, which reflects our emphasis on market diversity and user needs. Sui's ecosystem is still maturing, and as the leading DeFi project, we will also be particularly cautious in choosing the assets to support. For each supported asset, we will conduct very strict screening.
First, the size and market value of the asset must reach a certain scale, and the price of the currency must be relatively stable. Because as collateral, excessive price fluctuations will lead to liquidation.
Secondly, the security of assets is also very important. We will conduct a careful background check on the project to check the security and control rights of the contract.
Regarding the plan to expand the long-tail asset list, we are actively exploring methods including but not limited to community voting to ensure that newly added assets can not only increase the richness of our ecosystem but also meet our risk management standards. With the launch of our NAVX token, the community can be more closely involved in the governance process of NAVI.
Odaily Planet Daily: Currently, long-tail assets do not include Boosted rewards. Will additional rewards be provided to some assets in the future as a support for other protocols?
Charles: Sui is particularly supportive of DeFi projects in the ecosystem. From August to now, NAVI has issued liquidity incentives worth more than 3 million US dollars to depositors on the protocol. At present, the main focus is on incentivizing blue-chip assets, but we have also begun to try to incentivize long-tail assets such as vSui. With the sale of our NAVX tokens, we will also use our own tokens for a series of incentives. We are also in close contact with the Sui Foundation to see if we can incentivize these new assets in an official form.
Odaily Planet Daily: Can the design utility of the NAVI token be revealed, such as lending APY Boost, protocol revenue sharing, etc.?
Charles: The functions of NAVX tokens are mainly divided into the following aspects:
Community governance;
We have innovated our own DLP model based on Radiant Capital. Users can provide liquidity of NAVX/Sui and NAVX/vSui on DEX, and then participate in the Boosted APY and protocol sharing activities.
Odaily Planet Daily: The circulation of SUI in 24 years will increase by 200% of the circulation at the beginning of the year. Is it expected that the Sui ecosystem will flourish, so users will choose to pledge a large amount of SUI?
Charles: The circulation of SUI will increase significantly after it is unlocked in 2024. I actually think this is good news. When circulation increases, token holdings will be more dispersed and currency prices will be more stable. Therefore, based on this background, we believe that LSD (Liquidity Staking Derivatives) will become a key development direction in the ecosystem. NAVI acquired the Volo LST project in the last month. Volo is the largest LST project on Sui, with a TVL of 16 million US dollars and more than 10,000 users.
By acquiring Volo, NAVI plans to play a key role in this trend by providing more flexible and efficient staking solutions. This will not only provide SUI holders with more staking options, but also promote the development of the entire Sui ecosystem by increasing liquidity and participation.
Odaily Planet Daily: A large amount of unlocked SUI is expected to be pledged, and the LSD protocol is also the focus of the current ecological development. What strategy does NAVI plan to achieve through the acquisition of Volo in this major event?
Charles: We have also seen the rise of LSD in the EVM ecosystem, and more narratives and hot topics are also centered around LST LRT, such as EigenLayer and Puffer. We believe that Sui, as the second largest L1 in TVL among all non-EVM chains, will also bring its security to other platforms through Restaking, which is also a major reason why we acquired Volo.
Odaily Planet Daily: Last question: Can you introduce NAVI’s recent detailed IDO plan?
Charles: Thank you for your enthusiastic support for our IDO, which was oversold in 10 seconds. IDO is just a starting point for us. NAVI will continue to work hard on Sui with our NAVX tokens and a new economic model, and give a satisfactory answer to all the supporting partners. For specific IDO and subsequent token plans, please follow our Twitter.
Community Free Q&A
Question 1: What are the advantages of NAVI’s lending compared to Scallop?
Charles: The biggest difference between NAVI and Scallop is the utilization rate of funds. Navi has a loan volume of 60 million US dollars, while Scallop only has a loan volume of about 15 million US dollars.
Question 2: I understand that NAVI is Sui’s activity in OKX. At the same time, NAVI’s IDO information has also been forwarded by Sui’s official. It can be seen that NAVI’s strength is recognized by many large institutions. Could you please introduce Navi’s team and investors? This is also an important basis for us small investors to select projects.
Charles: Investment institutions can refer to the following figure:
Question 3: Are haSUI and vSUI supported on Navi locked SUIs?
Charles：It is SUI for liquidity staking.
Question 4: What is the relationship between NAVI and Cetus? Why do we need to conduct IDO on Cetus?
Charles: Cetus is the leading DEX on Sui and a great partner of ours. We are very happy to conduct IDO on Cetus.
