After launching for a while, Sui Network’s ecosystem does not have too many outstanding points as TVL in general does not grow, but the pieces of this ecosystem are gradually forming, especially Lending with Navi Protocol. So what is Navi Protocol? Join Weakhand to learn about the Lending project on Sui Network’s ecosystem.
A few other articles that people can also refer to to better understand the Sui Network ecosystem:
- What is Sui (SUI)? Sui Cryptocurrency Overview
- What is SuiPad (SUIP)? SuiPad Cryptocurrency Overview
- What is Suiswap (SSWP)? Overview of Suiswap Cryptocurrency
What is Navi Protocol?
Navi Protocol is a decentralized Lending & Borrowing protocol built on the Sui Network ecosystem. Navi allows users to borrow and lend simply and quickly without having to go through a third party.
Navi liquidity pools are created for each supported asset, and users can deposit their assets into these pools. They will receive Navi receipt tokens (nSUI) in return, representing their share of the pool. These tokens can be used as collateral to borrow other assets from the pool. The mortgage rate determines the amount that can be borrowed, and it is dynamically adjusted based on supply and demand.
Highlights of Navi Protocol
Different from Lending & Borrowing platforms on the market, Navi Oracle gets prices from many different sources, including centralized Oracle price providers (Supra and Pyth) and cryptocurrency exchanges (Binance, OKX, Bybit and Coinbase). It then uses the TWAP (time pondered price average) algorithm to calculate the average price of all these sources.
This helps ensure that Navi Oracle’s price feed is secure, reliable, and scalable for all supported assets. Users who borrow on Navi Protocol can also feel more secure with their loans being securely guaranteed.
How Navi Protocol Works
For lenders
- Step 1: First, users need to access Navi and select the pool suitable for the assets they have, then proceed to deposit money.
- Step 2: Navi Protocol will return to the user a token representing that loan.
- Step 3: When users want to get their assets back, they need to send representative tokens back to Navi to receive their money.
For borrowers
- Step 1: People need to post collateral to receive representative tokens back from Navi Protocol.
- Step 2: From those representative tokens, people can borrow money from the platform.
- Step 3: Navi Protocol will use a third-party Oracle to be able to calculate the liquidation price.
- Step 4: To get back the collateral, the user needs to pay back the borrowed money plus interest.
Navi Protocol’s liquidation mechanism
Navi Orcale will calculate the Health Factor and then provide a liquidation price for the user’s loan. If the Health Factor drops below 1, the loan will be liquidated through DeepBook at a discounted price for the buyer.
DeepBook is a decentralized centralized command book (CLOB) built for the Sui ecosystem, because it is designed with an open source code along with an SDK, so all developers can access DeepBook. and use it.
Roadmap
Phase 1 (Q2 2023)
- Product launch and support for SUI, USDC, wETH, wBTC tokens.
- Launch of NAVI token.
- Set up DAO and governance system.
- Launch of NAVI staking.
- Launched leveraged vault.
Phase 2 (Q3~Q4 2023)
- Integrates with Sui Foundation’s DeepBook.
Phase 3 (2024)
- Launch of NAVI PRO
Core Team
Update…
Investors And Partners
Investors
Navi Protocol received an unspecified amount of investment by Mysten Labs, Coin 98, Gate.io and ViaBTC.
Partners
Navi is a partner of many projects in the Sui Network ecosystem such as Martian, Wormhole, Movex, Cetus, Pyth, OKX Wallet,…
Tokenomics
Update…
Exchanges
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Project Information Channels
- Website: https://www.naviprotocol.io/
- Twitter: https://twitter.com/navi_protocol
- Discord:
Summary
Above are the detailed information that everyone needs to understand to understand what Navi Protocol is? Weakhand hopes that this article will bring a lot of useful information to serve everyone’s market research process.