NAVI Protocol is Sui Network’s primary lending and borrowing protocol — offering Aave-style overcollateralized money markets for SUI, USDC, USDT, WETH, WBTC, and Sui liquid staking derivatives — where depositors earn interest and borrowers can leverage or access liquidity against their collateral with automated liquidations ensuring solvency.
Overview
NAVI launched on Sui mainnet in 2023 as the first and largest money market on Sui, quickly accumulating hundreds of millions in TVL as Sui’s DeFi ecosystem grew. NAVI’s architecture follows the Aave V2 model — shared liquidity pool per asset, interest rate curves calibrated to utilization, and a liquidation marketplace — adapted for Sui’s Move programming model and object-centric state. NAVI maintains strong integrations with Sui liquid staking derivatives (particularly Haedal’s haSUI), making it the lending layer for Sui’s LSDfi ecosystem.
Core Product: Money Market
The main product offerings are described below.
Supplying (Lending)
- Deposit USDC, USDT, SUI, WETH, WBTC, haSUI, vSUI, or other supported assets
- Receive nToken (e.g., nUSDC, nSUI) representing deposit + accrued interest
- Interest rate tracks utilization curve — higher utilization = higher supply APY
- nTokens are composable: other Sui protocols can accept them as collateral
Borrowing
- Post collateral → borrow up to the asset’s LTV ratio
- Variable interest rate (tracks utilization)
- Health factor monitored continuously
- If Health drops below 1: position becomes liquidatable
Liquidation
- Liquidators repay up to 50% of borrower’s debt
- Receive underlying collateral + liquidation bonus (7-15% depending on asset)
- Autonomous liquidation bots compete to monitor NAVI positions
- Close factor limits per liquidation event to prevent over-liquidation
Supported Assets and Risk Parameters
Key assets on NAVI (with approximate parameters):
| Asset | Max LTV | Liquidation Threshold | Bonus |
|---|---|---|---|
| USDC | 80% | 85% | 7% |
| SUI | 70% | 75% | 10% |
| WETH | 75% | 80% | 8% |
| haSUI | 65% | 70% | 12% |
Liquid Staking Integrations
NAVI is deeply integrated with Sui liquid staking:
haSUI (Haedal Protocol):
- haSUI (staked SUI LSD) accepted as collateral
- Users can: stake SUI → haSUI → deposit to NAVI as collateral → borrow SUI → stake again (leveraged staking)
- This loop maximizes staking yield at the cost of liquidation risk if haSUI depegs
vSUI (Volo Protocol):
- Similar LSD integration for the Volo liquid staking derivative
Isolated Pools
NAVI offers both main (shared) market and isolated pools:
- Main market — established assets (USDC, WETH, SUI), higher LTVs
- Isolated pools — newer/riskier assets, lower LTV, can’t be used as cross-collateral
- Prevents a bad asset in isolated pool from draining the main market reserves
NAVX Token
NAVX is NAVI’s governance and utility token:
- Governance — NAVX holders vote on new asset additions, LTV updates, interest rate models, treasury
- Staking — staked NAVX reduces borrowing rates for stakers (borrow rate discount)
- Liquidity mining — NAVX emissions distributed to NAVI suppliers and borrowers
- Revenue sharing: a portion of protocol interest revenue flows to staked NAVX
Sources
- NAVI Protocol — Official Documentation — money market mechanics, collateral types, and liquidation parameters.
- DeFiLlama — NAVI Protocol — TVL and borrow volume on Sui.
- CoinGecko — NAVX Token — token supply and market data.