NAVI, a leading lending protocol built on the Sui blockchain, recently introduced its native token, NAVX, to enhance functionality and incentives within its ecosystem. Despite NAVI's rapid growth, the key challenge is leveraging NAVX to drive sustainable borrowing and lending activities without encouraging unhealthy practices like looping. To ensure long-term success, NAVI must address the following critical questions:

• What are the strategic objectives with the introduction of NAVX, and which metrics are most effective in tracking progress?
• How can NAVX be utilized to incentivize lending and borrowing while ensuring the protocol's stability?
• What exploitative behaviors, such as incentive farming through looping, must be identified and discouraged?
• What are the inherent risks associated with lending protocols, and how can they be tracked to optimize parameter tuning efficiently?
• How can the performance of lending pools be continuously evaluated to confirm that NAVX incentives promote sustained growth and liquidity?
• How is the NAVX token performing in terms of user adoption, and how many users are holding and utilizing NAVX tokens?

NAVI has integrated extensive on-chain analytics via the OpenBlock platform to monitor all aspects of its lending ecosystem. Key areas of focus include:

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• Lending Metrics: TVL, supply, borrow, supply and borrow APRs, generated fees, and utilization ratios.
• Exploitive Metrics: Supply, borrow, and fees generated due to looping, and the incentives being paid to loopers.
• Risk Metrics: Monitoring supply and borrow amounts at risk of liquidation due to price fluctuations.
• User Metrics: Tracking the number of users supplying and borrowing on the NAVI platform, with insights into user distribution between whales and retail participants.
• NAVX Metrics: Analyzing the number of users holding NAVX tokens and their utilization across different platforms.

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NAVI has launched targeted incentive programs using NAVX to encourage both lenders and borrowers. These programs are designed to boost TVL, increase borrowing activity, and enhance overall market participation while mitigating risks associated with exploitative behaviors and volatile market conditions. The incentive structure and KPIs have been fine-tuned over time to align with evolving market conditions and NAVI's strategic goals.

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Multiple dashboards have been implemented for various purposes, including risk tracking, growth tracking, incentive efficacy, and NAVX monitoring. 

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• The growth tracking dashboard monitors key metrics like supply, borrow, TVL, utilization rate, and generated fees. 
• The risk dashboard highlights the supply and borrow amounts at risk of liquidation due to price fluctuations, aiding the NAVI team in optimizing parameters. 
• The incentive efficacy dashboard assesses whether incentives are fostering sustainable pool growth, considering factors like generated fees and used incentives. 
• Finally, the NAVX dashboard provides insights into the utilization and distribution of NAVX tokens.