Table of Contents
Overview of Navi Protocol
What is Navi Protocol?
Navi Protocol is a lending and borrowing project built on the Sui blockchain. It allows users to participate in the market in two key roles: liquidity providers and borrowers. With a mission to provide core DeFi infrastructure, Navi aims to become a crucial player in the rapidly growing DeFi ecosystem on Sui.
What is Navi Protocol?
Navi Protocol offers a decentralized liquidity protocol where users can lend and borrow assets without intermediaries through liquidity pools. Each supported asset on the protocol has its own liquidity pool. Users deposit their assets into the pool and receive “Navi receipt” tokens (e.g., nSUI), representing their share in the liquidity pool. These tokens can also be used as collateral to borrow other assets.
In simpler terms, Navi functions like a decentralized bank, where users can deposit and borrow assets from others without the need for intermediaries like traditional banks.
Related: What is Sui? Information about SUI Token
Key Features of Navi Protocol
1. Lending and Borrowing
Lending and Borrowing
Lending Assets: Users can deposit their assets on the platform to earn interest. The interest rates are determined by market supply and demand. To participate, users need to:
Connect a compatible wallet with the application.
Choose the desired asset for lending.
Deposit the asset into the lending pool.
After depositing, users will start earning interest, which is accrued periodically. Both the principal and the interest earned can be withdrawn at any time.
Borrowing Assets: Users can borrow assets by collateralizing other tokens. To borrow, users need to:
Connect a compatible wallet with the application.
Deposit collateral tokens as security.
Choose the asset and amount they want to borrow.
Users will incur interest on the borrowed amount and can repay the loan with interest at any time to unlock their collateralized assets.
2. Volosui
Volosui
Volosui is a prominent Liquid Staking platform on the Sui ecosystem, and Navi recently merged with Volo to expand its operations. Users can stake SUI to receive vSUI, a liquid version of the SUI token, which allows them to maintain liquidity for their staked assets while earning staking rewards.
Investors
Investors
On January 31, 2024, Navi Protocol successfully raised $2 million from prominent investment funds, including OKX Ventures, Hashed Fund, and Gate.io.
Similar Projects
Navi Protocol is a lending and borrowing platform similar to other notable projects in the field, such as AAVE and RDNT.
Overview of NAVX Token
NAVX is the native token of the Navi Protocol.
Basic information
NAVX Token
Token Name: Navi Protocol
Token Symbol: NAVX
Blockchain: Sui
Smart Contract: 0xa99b8952d4f7d947ea77fe0ecdcc9e5fc0bcab2841d6e2a5aa00c3044e5544b5::navx::NAVX
Listing Date: April 2024
Price: $0.16 USD (as of October 8, 2024)
Market Cap: $40 million USD
Fully Diluted Market Cap: $160 million USD
Total Supply: 1,000,000,000 NAVX
Circulating Supply: 243,631,317 NAVX
NAVX Token Allocation
NAVX Token Allocation
Team: 20% — Allocated to the team to align with long-term project success.
Treasury: 10% — Reserved for daily operations and strategic initiatives.
Liquidity Provision: 4% — To support market makers and secure liquidity.
Public Sale (IDO): 1.2% — Allocated for the initial decentralized exchange offering.
Marketing: 3% — Used for promotional activities and community outreach.
Ecosystem & Airdrop: 45.8% — Dedicated to incentivizing TVL growth, campaigns, and airdrops.
Investors / Advisors: 16% — Allocated to investors and advisors.
NAVX Token Release Schedule
NAVX Token Release Schedule
It is projected that all NAVX tokens will be fully unlocked by 2027.
Use Cases for NAVX Token
Staking: Users can stake NAVX to earn rewards. Additionally, staking NAVX reduces perpetual transaction fees on the DEX. The more tokens staked, the greater the fee reduction.
Governance: NAVX holders can participate in the governance of the Navi Protocol by proposing and voting on important decisions.
Fee Collection and Distribution: Navi Protocol collects fees from all perpetual transactions and lending/borrowing activities. A portion of these fees is distributed to stakers, while the remainder goes to the protocol’s treasury and other operations.
Where to Buy NAVX Token?
Investors can buy and sell NAVX on exchanges such as Bybit, HTX, and Kucoin.
Potential Evaluation
Here are some personal views on Navi Protocol:
Navi is the leading lending and borrowing project within the SUI ecosystem, an ecosystem with significant growth potential. Recently, SUI achieved a milestone with a total value locked (TVL) surpassing $1 billion.
Navi offers highly applicable products that operate efficiently, generating considerable revenue. The total value of lending and borrowing transactions has reached nearly $500 million, showcasing the project’s rapid growth.
However, despite its potential, the tokenomics of Navi is not particularly attractive, with inflation remaining high. Even though the project raised $2 million, its current valuation is still relatively high compared to investor expectations.
Conclusion
The information provided by AZC.News about Navi Protocol and NAVX Token gives an insightful overview. If you have any questions, feel free to leave a comment below for further clarification!
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