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CoinEx Research: NAVI Protocol,the One-stop Liquidity Protocol built on Sui, maximizing the capital efficiency

2023-08-02 07:23:13

Recently, ViaBTC Capital invested in an innovative DeFi project called NAVI protocol, the one-stop liquidity protocol built on Move, which offers easy to use lending/borrowing. The NAVI team just completed its Strategic round, led by Mysten labs, the official department of Sui Blockchain. Other investors include AC Capital, NGC, Coin98, etc.

NAVI on Sui

About Sui

Sui is the first completely permissionless Layer 1 blockchain, characterized by security and speed. It enables parallel transactions and uses simpler, faster settlement methods without the need for consensus when the interaction is simple enough, thus opening up huge possibilities for finance, digital commerce, and gaming. 

Why build on Sui?

The team believes in the future mass adoption of DeFi and entrusts simplicity and security of the Move Language.

Problems w/ Current Lending/Borrowing:

Problems w/ Current Lending/Borrowing

NAVI’s Product and Advantage

NAVI Lite and NAVI Pro

NAVI Pro Features

1. Advanced Features

Isolation mode: Isolation mode allows to list of new assets as Isolated which has a specific debt ceiling and can be only used to borrow stablecoins that have been permitted by NAVI Governance

Automatic Leverage Vaults:

  • Enables the automatic opening of leveraged positions using a borrowable asset of choice with low APR to enjoy enhanced farming rewards of the collateral token
  • Recursive “looping” of a collateral asset into a borrow + supply position
  • Greatly enhanced by the ability to create leveraged strategies on assets that have a native APY, e.g. Liquid Staked Assets and LP tokens.
  • Limitations

Leverage vaults will be limited to yield-bearing asset collaterals with stable profiles. E.g. stable LP tokens and liquid staked assets

1-5x leverage positions will be available

New vaults will be developed based on community interest and subject to NAVI governance

Collateral Auto Rebalance:

  • Users are provided options to dedicate a % of their collateral to auto rebalance(auto sell and repay the loan) in case of liquidation event
  • Conservative(5%), Moderate(10%)
NAVI Auto Re-balance

2. Security

  • Supply/Borrow Limits: The platform implements supply limits for each Blue Chip asset to manage the risk associated with large lending positions. These limits can be adjusted based on market conditions and risk assessment.
  • Debt Ceilings:

These are limits on the total borrowing amount of a market that is collateralized by another specific asset in the pool. The cap is measured as an amount of the borrowed market underlying tokens.

Similarly to Supply Limits, Debt Ceilings enable further granular risk management of certain collateral assets, by making sure that certain tail assets cannot be used to collateralize positions that are too large.

  • Oracle Security

Day-zero partnership with Supra Price oracles to provide secure, reliable, and scalable price feeds for all supported assets. These oracles ensure accurate pricing information, which is essential for determining collateral value and enforcing platform security mechanisms.

Middle layer to compare prices between Supra, DeepBook and Pyth.

Select the lowest price for liquidation threshold;

Select the highest price for liquidation bot;

  • Liquidation Mechanics

Day-zero support for liquidations via LP-based systems (UniV3-like, such as turbos.finace), and CLOB-based systems such as DeepBook.

Liquidators can purchase under-collateralized assets at a discount on the DEX, providing an incentive to maintain the health and stability of the lending pool by using the largest liquidity pools in the system

How NAVI Differs from other lending/borrowing protocols?

Since the recent series of hacks and crashes caused by the Curve incident, the market has lost its faith in DeFi and be less confidence in DeFi lending. However, NAVI will be different.

NAVI is the first Sui native lending/borrowing, focusing on lending/borrowing vertical ONLY aiming to serve long-term 100m+ TVL. The team is focused on one DeFi vertical and creating innovative features like "collateral auto rebalance, one-click leveraged vaults". While Aries market, Scallop builds a full suite of DeFi protocols with higher complexity thus leading to higher security risk.

NAVI has two product verticals. NAVI lite targets retail users; NAVI pro stays compliant and targets institutional traders. The team believes this product position fits in the waves as DeFi regulation approaches.

Tokenomics

NAVI Tokenomics endeavors to foster a shared vision of harmonization among stakeholders operating within the NAVI ecosystem, protocol functionality, and the NAVI token, which forms a vital pillar of security for the NAVI Protocol.

NAVI is NAVI Protocol’s governance token, the maximum supply for NAVI is 1,000,000,000.

and has the following use cases:

NAVI Utility Directions

1. Governance:

NAVI token holders are eligible to vote on Governance Proposals in the below categories.

  • Insurance Pool
  • Money Markets

New Proposals (collateral & isolated market candidate)

NAVI Liquidity Incentive Weekly Emissions Allocation

  • Ecosystem Reserve

2. Liquidity Incentives:

Users earn emitted NAVI tokens as rewards by providing liquidity to the liquidity pool.

3. Boosting:

  • Users earn additional NAVI from the Boosting Pool by locking NAVI tokens
  • The Boosting Pool incorporates voting escrow NAVI (veNAVI) for rewards accrual. Locking an amount of NAVI applies a boost to specific pools.

New progress about NAVI Protocol

  • NAVI Protocol is on mainnet already.
  • NAVI achieved close to 10k users over the past day with the OKX campaign.
  • Liquidity incentive plan is in progress and will take effect next week.
  • Kucoin x SUI Hackathon Presentation - Won first place at Defi Sector.

Our Vision about NAVI

We’re optimistic about SUI ecosystem, and NAVI is one of our key projects in the layout of Sui. NAVI is an important DeFi projects officially supported by Sui (funded from Mysten Labs), which is the only lending protocol officially supported by Sui at present. Here are some points that we have confidence on NAVI. 1) Experienced founders managing over 100m TVL protocol (helio.money). 2) Founders Network: Well connected in BNB Chains and expect to bring more TVL from BNB chains to Sui. 3) Risk Control Experience: Successful experience in handling 10m+ scale stolen funds and recovering funds successfully.

About NAVI Protocol

Website: https://www.naviprotocol.io/

Twitter: https://twitter.com/navi_protocol

Telegram: https://t.me/navi_protocol

Discord: https://discord.com/invite/R6Xkbee8Xq

Others: https://bit.ly/navi_mainnet_video

About CoinEx

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Website: https://www.coinex.com/

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