Navi Protocol is a leading lending and borrowing platform built on the Sui blockchain, empowering users to collateralize assets and access liquidity. With ambitions to become the largest lending and borrowing platform within the Sui ecosystem, Navi Protocol is strategically positioned as a central liquidity hub for this burgeoning network. According to DefiLlama, Navi Protocol consistently ranks among the top Sui projects, boasting a Total Value Locked (TVL) approaching an impressive $400 million.
Table Content:
Navi Protocol’s Product Suite
Lending and Borrowing
At the core of Navi Protocol lies its lending and borrowing functionality. This service operates on a straightforward principle:
Lenders: Users deposit assets into Navi Protocol, earning interest on their supplied capital. Interest rates are dynamically determined by market forces, reflecting the liquidity, supply, and demand for each specific asset within the crypto market.
Borrowers: Deposited assets serve as collateral, enabling users to borrow other assets. Mirroring traditional lending practices, borrowers incur interest on their loans. Interest rates fluctuate based on the asset’s liquidity on the platform.
Navi Protocol distinguishes itself by supporting a diverse range of assets within the Sui ecosystem, exceeding many of its competitors:
Blue Chip Assets: These assets, including WBTC, USDT, USDC, SUI, and WETH, are characterized by high liquidity, substantial market capitalization, and robust borrowing demand.
Liquid Staking Tokens: Representing a significant segment of the crypto market with over $40 billion in locked value, liquid staking tokens such as haSUI and vSUI are also supported.
Long-Tail Assets: Navi Protocol embraces higher-risk, higher-reward long-tail assets with lower liquidity and market capitalization, currently featuring CETUS from Cetus Protocol.
Key Considerations for Users:
Liquidation Threshold (LT): This crucial metric represents the maximum borrowing capacity relative to the collateralized assets. For instance, a 60% LT limits borrowing to 60% of the collateral value. If market fluctuations cause the LT to be breached, collateral will be liquidated to restore the required ratio.
Liquidation Penalty: This penalty, applied as a percentage of the liquidated assets, is incurred by borrowers when liquidation occurs. A 10% penalty would require repayment of the loan plus an additional 10% of the liquidated collateral.
Flash Loans
Navi Protocol facilitates flash loans, enabling users to borrow without collateral. However, the loan and accrued interest must be repaid within the same transaction. Primarily utilized for arbitrage opportunities, flash loans typically require coding expertise. Currently, flash loan interest rates on Navi Protocol are highly competitive, ranging from 0.06% to 0.2%.
Navi Protocol’s Competitive Advantages
Several key advantages distinguish Navi Protocol within the Sui ecosystem:
Robust Security: Collaborations with multiple oracle providers ensure secure and reliable price feeds for all supported assets. These oracles provide accurate pricing data and enforce critical security mechanisms across the platform.
DEX-Based Liquidations: Liquidators can purchase collateral at a discount on decentralized exchanges (DEXs), contributing to the stability of lending pools.
Diverse Asset Support: Navi Protocol stands out for its extensive support of various asset types within the Sui ecosystem.
Understanding the NAVX Token
NAVX Token Key Metrics
- Token Name: Navi Protocol
- Ticker: NAVX
- Blockchain: Sui
- Contract: 0xa99b8952d4f7d947ea77fe0ecdcc9e5fc0bcab2841d6e2a5aa00c3044e5544b5::navx::NAVX
- Token Type: Utility, Governance
- Total Supply: 1,000,000,000 NAVX
NAVX Token Allocation
- Airdrop & Liquidity Incentive: 45.8%
- Team: 20%
- Investor/Advisor: 16%
- Treasury: 10%
- Liquidity Provision: 4%
- Marketing: 3%
- Public Sale: 1.2%
NAVX Token Vesting Schedule
- Airdrop & Liquidity Incentive: 1.1% at TGE, then 2.75% monthly.
- Team: 8-month cliff, then 4% monthly.
- Investor/Advisor: 6-month cliff, then 5.26% monthly.
- Treasury: 14% at TGE, then 1.65% weekly.
- Liquidity Provision: 100% at TGE.
- Marketing: 10% at TGE, then 5% monthly.
- Public Sale: 100% at TGE.
Team, Investors, and Partners
The Team
Navi Protocol is led by a team of experienced professionals:
- Elliscope Fang: Co-Founder, with a background in engineering at LinkedIn and Expedia.
- Charles H: CTO and Co-Founder, bringing engineering expertise from Apple and DJI.
Investors and Partners
Navi Protocol has secured over $2 million in funding across two rounds:
January 31, 2024: $2 million raised, led by OKX Ventures, Hashed Fund, and dao5, with participation from Arche Fund, ViaBTC Capital, Mechanism Capital, and others.
February 7, 2024: IEO on Gate.io, raising $30,000 for 1 million NAVX tokens (equivalent to $0.03/NAVX).
Strategic partnerships within the Sui network include Turbos Finance, Cetus, and Martian Wallet.
Comparable Projects
Vesu: A lending and borrowing platform on the Starknet network allowing permissionless asset lending and borrowing.
Suilend: A Sui-based lending and borrowing protocol developed by the team behind Save (formerly Solend).
