This document is a progress report for the NAVI decentralized finance (DeFi) platform, providing key metrics and insights into its performance during March 2024. The report covers various aspects, including the total value locked (TVL) across different asset pools, user activity trends, protocol borrowing fee, and utilization rates.
In March, NAVI experienced a 4.73% decrease in the total value supplied compared to February, dropping from $170.68M to $162.60M. Simultaneously, the total value borrowed saw a more substantial decline of 15.80%, decreasing from $66.22M in February to $55.76M in March.
Despite the decreases in supply and borrow values, the platform's TVL grew by 2.27%, increasing from $104.46M in February to $106.83M in March. This shows that the reduction in the supplied value was less significant than the decrease in the borrowed value, resulting in an overall TVL increase.
The platform's monthly borrowing fee took a significant hit, declining by 22.79% from $645K in February to $498K in March. This substantial drop in borrowing fee may be attributed to various factors, such as lower user activity and reduced borrowing demand.
The utilization rate, which represents the percentage of supplied assets being borrowed, decreased by 11.50% from 38.79% in February to 34.33% in March. This decline in utilization rate aligns with the larger decrease in borrowed value compared to the supplied value, indicating a potential reduction in borrowing demand or increased supply during March.
Overall, while the platform experienced growth in TVL during March, it faced challenges in terms of declining supply, borrow values, monthly borrowing fee, and utilization rate. However, the protocol has started to grow again from mid-March, indicating a potential recovery.
In March 2024, the SUI pool on NAVI saw a steady increase in its TVL, starting at $56.9 million on March 1st and rising to $73.9 million by March 29th - a growth of around 30% over the month. This growth is due to an increase in SUI prices as well.
The vSUI (liquid staked SUI) pool also experienced significant inflows in the last 4 days of the month, with its TVL nearly tripling from $4.6 million on March 1st to $12.4 million by March 31st. This indicates increasing demand for liquid staking of SUI, specifically vSUI, towards the end of March.
The USDC pool TVL declined by around 20% from $25.8 million on March 1st to $20.4 million by month-end. Conversely, the USDT pool TVL grew by over 27% during March, from $10.3 million on the 1st to $13.1 million on the 29th, pointing to some shift in stablecoin preferences towards USDT.
The WETH pool saw growth over the month, starting at $3.91 million on March 1st, rising to around $6.41 million in mid-March, and ending the month at $7.96 million. This represents an over 100% increase in the WETH pool TVL during March.
The NAVX pool started March at $1.79 million and remained relatively steady until around March 20th. After the 20th, it exhibited an upward trend, reaching $4.19 million by month-end on March 29th.
Smaller pools like HASUI and CETUS also registered TVL increases in March, though their overall contribution to platform TVL remained limited.
In summary, March 2024 data highlights growing interest in the SUI ecosystem, with the SUI and vSUI pools seeing major value inflows. While USDC TVL declined, the surge in USDT deposits signals some changing stablecoin dynamics over the monthly period.
NAVI's usage trends exhibited notable fluctuations throughout March. The number of daily active Borrowers started the month at 577.0 and experienced a dip in the middle, reaching a low of 409.4 on March 15th, before rebounding towards the end of the month to 494.3 on March 29th.
The Suppliers followed a somewhat similar trajectory, kicking off March at 1464.0 daily active users. This figure declined steadily until March 17th when it reached 1378.0, after which it began increasing again, closing out the month at 1780.7 on March 29th.
The total combined daily active users of Borrowers and Suppliers mirrored these undulating patterns. Beginning at 2041.0 on March 1st, the total dipped to a month-low of 1703.1 on March 15th, before climbing back up to 2275.0 by March 29th.
While the overall user counts displayed volatility, the proportion of Borrowers to Suppliers remained relatively stable throughout March. Borrowers constituted between 20.9% to 28.2% of the total user base during this period, with the supplier ratio ranging from 71.8% to 79.1% correspondingly.
In March, NAVI saw fluctuations in protocol interest borrowing fees across various pools. The total borrowing fee was driven by activities on the SUI blockchain, with the SUI pool accounting for the largest share.
The SUI pool borrowing fee experienced several peaks and dips throughout the month, ultimately ending March at $6.02K. This pool consistently contributed a substantial portion of the total monthly borrowing fee.
The stablecoin borrowing fee, comprising USDC and USDT, also played a major role. The USDC pool generated $7.60K in borrowing fee, while the USDT pool contributed $3.21K. Together, these stablecoin pools accounted for a significant portion of NAVI's March borrowing fee.
Notably, the WETH pool saw a steady increase in borrowing fee, starting from $51 on March 19th and reaching $391 by the end of the month. This upward trend suggests growing activity and adoption within this pool.
The CETUS pool experienced fluctuations, peaking at $39 on March 25th, before declining towards the end of the month. Similarly, the vSUI and HASUI pools exhibited varying borrowing fee patterns throughout March.
The NAVX pool, while contributing a smaller portion of the overall borrowing fee, demonstrated occasional spikes, with its highest daily borrowing fee of $26.08 recorded on March 28th.
Overall, NAVI's protocol interest borrowing fees in March were driven by a combination of stablecoin pools, the SUI pool, and emerging trends in other pools such as WETH, suggesting a diverse ecosystem with potential for further growth.
Throughout March, the utilization rates across NAVI's pools exhibited notable fluctuations and trends. The stablecoin pools, USDC and USDT, consistently maintained high utilization levels, peaking at 0.48 and 0.49, respectively.
The SUI pool, a core component of NAVI's ecosystem, demonstrated steady utilization, ranging from 0.26 to 0.31, suggesting a stable demand for its services.
The WETH pool witnessed a significant surge in utilization, starting the month at 0.16 and reaching a high of 0.47 on March 3rd, indicating growing activity and adoption.
The CETUS pool experienced varying utilization levels, peaking at 0.18 on March 25th, before declining towards the end of the month. This pattern could be influenced by market conditions or user preferences.
The vSUI and HASUI pools exhibited similar utilization trends, with vSUI ranging from 0.19 to 0.37, and HASUI fluctuating between 0.15 and 0.37. These pools likely cater to specific use cases or user segments within the NAVI ecosystem.
Notably, the NAVX pool consistently maintained low utilization levels throughout March, hovering around 0.04 on average. This can be attributed to the fact that NAVI did not allow borrowing for a specific period.
Overall, the utilization data highlights the diverse dynamics within NAVI's ecosystem, with stablecoin pools maintaining steady demand, emerging trends in pools like WETH, and varying utilization patterns across other pools.
NAVI exhibited a fluctuating supply amount throughout March, starting at approximately $166M on March 1st and reaching a peak of around $203M by the end of the month. This overall upward trend suggests increasing adoption and trust in NAVI's lending platform.
Scallop's supply amount followed a similarly fluctuating pattern, ranging from $99M to $151M during the same period. Also, Suilend, a recently introduced protocol with a smaller market presence, was not initially launched, reflected by its 0% supply amount. However, after its mid-March launch, the supply amount gradually increased, reaching approximately $50M by the end of the month.
Throughout March, NAVI maintained a consistently high utilization rate, ranging between 32-37%. This sustained high utilization rate indicates a robust demand for NAVI's services and efficient utilization of its available liquidity.
NAVI's ability to maintain such elevated utilization levels can be attributed to its strategic parameter tuning approach. This approach prioritizes fund safety, even during periods of market volatility when stablecoins experience substantial borrowing activity. By effectively managing liquidity through scientific parameter adjustments, NAVI can continue meeting the increasing demand for its services while ensuring the stability of its platform.
In contrast, Scallop's utilization rate remained relatively lower during the same period, fluctuating between 7-13%. While Scallop's utilization rate is not as high as NAVI's, it still indicates a demand for its services.
Suilend, a recently introduced protocol with a smaller market presence, had not been launched initially, as indicated by the 0% utilization rate. However, its utilization rate gradually increased from mid-March, peaking at around 48% towards the end of the month.
Moving forward, it will be crucial for NAVI to maintain its strategic approach to parameter tuning and liquidity management. This will allow NAVI to continue meeting the high demand for its services while ensuring the stability and safety of its platform, solidifying its position as a leading protocol in the market.
NAVI demonstrated a steady increase in its borrow amount throughout March, starting at approximately $60M on March 1st and peaking at around $66M by month's end. This upward trend suggests growing adoption and utilization of NAVI's lending services.
Comparatively, Scallop's borrow amount remained lower, fluctuating between $10M and $14M during the same period. While Scallop's borrow amount experienced variability, NAVI's consistent growth highlights its ability to capture a larger share of the borrowing market.
Suilend, a recently introduced protocol with a smaller market presence, was not present and launched until mid-March. After being launched, it saw a gradual increase in its borrow amounts, reaching approximately $24M by the end of the month.
The NAVI platform on the Sui exhibited strong performance and growth across various metrics in March 2024, despite some challenges.
TVL increased by 2.27% month-over-month to $106.83M, primarily driven by significant inflows into the SUI and vSUI (liquid-staked SUI) pools, indicating a growing interest in the Sui ecosystem. The SUI pool's TVL grew by around 30%, while the vSUI pool nearly tripled towards month-end. Stablecoin dynamics also shifted, with the USDC pool TVL declining by 20% and the USDT pool TVL increasing by over 27%.
User activity followed fluctuating patterns, with the number of daily active Borrowers and Suppliers dipping in mid-March before rebounding strongly by month-end. However, the proportion of Borrowers to Suppliers remained relatively stable at around 20-28% and 72-80%, respectively.
Protocol borrowing fees declined by 22.79% month-over-month to $498K, driven by lower user activity and reduced borrowing demand. The SUI pool and stablecoin pools were the major contributors, while the WETH pool demonstrated a steady revenue increase, implying growing adoption. Utilization rates were consistently high for stablecoin pools like USDC and USDT, peaking at 48%-49%. The SUI pool maintained steady utilization levels of 26%-31%, while the WETH pool witnessed a significant surge, peaking at 47% on March 3rd.
Compared to other lending protocols on Sui like Scallop and Suilend, NAVI exhibited a higher overall supply amount, consistently high utilization rates ranging from 32-37%, and steady growth in borrow amounts, peaking at around $66M by month-end.
Despite some challenges, NAVI's March 2024 data highlights the platform's growth, driven by the burgeoning Sui ecosystem, signaling a diverse and evolving DeFi landscape on Sui.
