Introduction

This document is a progress report for the Navi decentralized finance platform, providing key metrics and insights into its performance during June 2024. The report covers various aspects, including the total value locked across different asset pools, user activity trends, protocol borrowing fee, and utilization rates.

Summary

The NAVI platform on Sui demonstrated strong performance and growth across various metrics in June 2024, despite challenging market conditions. Key highlights include:

• While Sui's TVL has decreased in USD terms, Navi's metrics in USD remain mostly unaffected.
• In the last week of June, Navi topped the Sui protocol TVL chart and has sustained its position since.
• Navi performed relatively well among lending protocols.
• Four Navi asset pools (vSUI, NAVX, CETUS, SUI) experienced an increase in the daily average amount of both supply and borrow in June compared to May.
• The daily average amount of SUI supply and borrow increased in June, with the borrowing pool growing at a higher rate, indicating users' willingness to use the platform despite a downturn in the market.
• The vSUI pool grew by 118% (in token terms) in June.
• The decrease in utilization of the vSUI pool is expected to attract more borrowers.
• High borrow APY in NAVX pool attracted sticky suppliers.

Overall Trend

Despite Sui’s TVL dropping from its all-time high of $751 million on May 20, 2024, to $592 million on June 29, 2024, Navi's metrics (Supply, Borrow, Total Value Locked, Daily Fees, Utilization) in USD values have remained fairly consistent, demonstrating substantial resilience to market turmoil.

Amidst the unfavorable market conditions in June, Navi managed to top Sui’s TVL chart at $127 million and has been sustaining this strong position during the market turmoil.

Navi continues to lead in supply value at $195 million, showing a fairly steady trend with a slight decrease, similar to Suilend and Scallop, both of which have also seen moderate decreases.

As the leader in borrow figures, Navi also experienced a smaller decrease compared to other protocols.

Navi's utilization remains consistent with a slight downward trend from 40% to 35%, while Scallop stabilizes around 35%. In contrast, Suilend drops significantly from 51% to 30%.

The following analysis will be conducted in token terms to ensure a fair internal comparison.

Despite harsh market conditions, we have observed the following increases in the daily average amount in both supply and borrow pools (in token terms):

Additionally, CETUS has experienced increases in both Daily Fees (42%) and Utilization Rate (9%).

SUI & vSUI Pool

Both the supply and borrowing of SUI have increased in token terms, with borrowing experiencing a significantly larger scale of increase (2% and 20%). This indicates that borrowing demand persists even in a downward market, demonstrating that users are still willing to utilize the Navi product.

We have observed a substantial increase in vSUI supply, rising from 23.7 million on June 1st to 51.7 million on June 30th, representing a 118% increase in just 30 days, an extraordinary performance in the downturn market.

On the other hand, although the supply of vSUI is increasing by 65% in token terms, the borrowing has not followed proportionately, increasing only by 10% in token terms. As a result, the Utilization Rate is decreasing, which causes the Borrowing APY to decrease. This could, in turn, attract more borrowers to the vSUI pool.

NAVX Pool

As the borrow APY on the NAVX pool surged from 4.47% on June 16 to 28.53% on June 19, it attracted users with several large deposit events. This increase lifted the token amount TVL from 20.1 million on June 19 to 37.2 million on June 21, a 85% increase, and it has since stabilized at around 39 million.

Utilization

The utilization of SUI and USDC pools remained stable throughout June, averaging around 45%. The utilization of USDT experienced a gentle decrease during the month, followed by a steep decline in the last few days of June, before recovering. The utilization of CETUS exhibited notable fluctuations, ranging from 18% to 62%, and stabilized around 30% in the last week of June. The utilization of haSUI, WETH, and vSUI all experienced various degrees of decline in June. The utilization of NAVX remained within the 5%-12% range.