KEY TAKEAWAYS
- The Sui Network’s Total Value Locked (TVL) has surged to $2.34 billion, driven by the NAVI Protocol’s integration of stablecoins and Real World Assets.
- NAVI Protocol has integrated FDUSD, enhancing stablecoin composability on Sui with a new liquidity pool for lending and borrowing.
- FDUSD, backed by US dollars, has quickly become the fourth largest stablecoin by market cap, following USDT, USDC, and DAI.
- The integration of FDUSD is expected to boost liquidity and user engagement within Sui’s DeFi ecosystem.
As the cryptocurrency market gains momentum, the total liquidity on the Sui Network has reached unprecedented levels. As of December 12, 2024, the Total Value Locked (TVL) on Sui stands at $2.34 billion, with a stablecoin market cap of $320 million, according to DefiLlama.
The NAVI Protocol has played a significant role in this liquidity surge, amassing a market size exceeding $700 million, including $90 million in stablecoin value. NAVI has been instrumental in integrating native stablecoins and Real World Assets (RWAs) into the Sui ecosystem, including Agora AUSD, Circle USDC, and Ondo USDY.
FDUSD Integration Enhances Stablecoin Composability
On December 12, 2024, NAVI announced the integration of FDUSD, further enhancing native stablecoin composability on Sui. The FDUSD liquidity pool will be available for lending, borrowing, and collateral with specific parameters: a maximum Loan to Value of 70% and a Liquidation Threshold of 75%. These parameters are subject to change as the FDUSD money market evolves.
FDUSD, issued by FD121 Limited, a subsidiary of Hong Kong-based First Digital Group, has quickly gained popularity since its introduction in June 2023. Backed by US dollars or equivalent assets, FDUSD ranks fourth in market cap among stablecoins, trailing only USDT, USDC, and DAI.
NAVI Protocol’s Role in Sui’s DeFi Ecosystem
NAVI currently holds the largest liquidity on Sui, offering over 15 Sui-based assets for lending and borrowing. The addition of the FDUSD liquidity pool is expected to enhance stablecoin composability within the network, allowing users to utilize their capital more efficiently.
By integrating FDUSD, NAVI aims to provide users with diverse assets that enhance capital efficiency across Sui’s DeFi ecosystem. This integration is a crucial step for FDUSD adoption, offering holders more utility and access to NAVI’s deep liquidity. Users can explore various yield strategies within NAVI, leveraging the protocol’s extensive asset variety.
The integration of FDUSD on Sui is poised to attract more liquidity, fostering network growth and a stronger user base. For more details, the announcement can be found here.
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