Sui Ecosystem Spotlight: NAVI Powering RWA Growth on Sui with USDY

⚠️ NOTE: USDY is not, and may not be, offered, sold, or otherwise made available in the US or to US persons. USDY has not been registered under the US Securities Act of 1933, a amended ("Act") or pursuant to securities laws of any other jurisdiction, and may not be offered, sold or otherwise transferred in the US or to US persons unless registered under the Act or an exemption or exclusion from the registration requirements thereof is available. Additional restrictions may apply. Ondo USDY LLC, the issuer of USDY, is not registered as an investment company under the US Investment Company Act of 1940, as amended. Nothing herein constitutes any offer to sell, or any solicitation of an offer to buy, USDY. Acquiring USDY involves risks. A USDY holder may incur losses, including total loss of their purchase price. Past performance is not an indication of future results.

Ondo does not endorse, Ondo does not make any representation or warranty whatsoever (express or implied, including but not limited to any warranty of merchantability, fitness for a particular purpose or non-infringement) regarding, and ONDO SHALL NOT HAVE ANY LIABILITY WHATSOEVER WITH RESPECT TO ANYONE'S USE OF, any third-party products, services or technologies referenced herein. Additional terms apply. Visit http://ondo.finance/usdy for details.

In a period marked by new infrastructure releases coming at a breakneck pace, a consolidation in user activity within the last quarter has shined a light on a few clear technical standouts. Sui, a layer-1 blockchain built with the Move programming language, has led this consolidation to become one of the fastest growing DeFi ecosystems, nearly doubling in TVL in the past three months. For Ondo’s United States Dollar Yield token (USDY), growing ecosystems like Sui present optimal opportunities to leverage increasing adoption of real world assets. In only 1.5 years since launch, Sui now ranks as the second largest non-EVM DeFi ecosystem with over $1B in TVL.

The platform at the center of this momentum - NAVI Protocol.

NAVI: Sui’s Largest Protocol

NAVI is the largest DeFi protocol on Sui, accounting for more than 40% of the total TVL. It features robust lending markets and leverage vaults offering high yield strategies, and has become the go-to dApp for reliable DeFi strategies.

Now, they have integrated Ondo’s quasi-permissionless USDY, a yield-bearing asset secured by US Treasuries. With USDY, NAVI introduces a suite of distinct onchain opportunities for tokenized RWAs, such as yield maximization, lending, borrowing, and more—all on Sui, a network quickly becoming a DeFi hub.

Earn, Lend, and Leverage USDY on NAVI Protocol

NAVI Protocol’s integration with USDY unlocks a host of deployments within the Sui ecosystem:

Earn Yield with USDY: As a yield-bearing token secured by US Treasuries, USDY offers a pathway to passive returns. By depositing USDY into NAVI’s liquidity pools, users can duplicate returns with double yielding strategies.
Lend and Borrow USDY: NAVI's platform makes it easy to put USDY to work by lending it out to earn interest, or borrowing against it as collateral. The protocol's robust infrastructure ensures seamless interaction, allowing USDY holders to access liquidity when needed.
Leverage Vaults: With the integration of USDY, users can access NAVI’s innovative leverage vaults, which allow them to maximize their exposure to USDY’s yield by automatically adjusting positions based on market conditions.

USDY on NAVI: A Marriage of Innovation

USDY is an innovation on the standard of tokenized RWAs as financial tools, and it makes sense to leverage this across equally innovative protocols. NAVI has become a leader on Sui due to its pioneering contributions and a non-imitative approach to DeFi, making it an ideal platform for DeFi enthusiasts to explore what is possible with tokenized RWAs. A few of their innovative approaches include:

Advanced Oracle System: NAVI’s use of a diversified oracle network (Pyth, Supra, and a decentralized backup Oracle) ensures that pricing is reliable and secure. This is especially critical for maintaining the integrity of loans and liquidations, as well as safeguarding users’ assets.
Innovative DeFi Product Line: From its automatic leverage vaults to seamless liquidity pools, NAVI manifests the potential of Move dApps. The protocol’s focus on user-centric innovation, paired with its advanced security mechanisms, sets a high standard for decentralized finance on Sui.
Early Mover Advantage: As the protocol spearheads more than 40% of Sui’s total TVL, NAVI’s position as an early adopter of Sui has allowed them to grow in conjunction with the fast-rising ecosystem, and with a maturing platform and deepening liquidity on the network, NAVI has been able to provide prime yield opportunities to users.

The Growth of Tokenized RWAs on Sui

As Ondo continues its expansion of tokenized RWAs across the strongest blockchain economies, the integration of USDY into NAVI Protocol represents an important step in bringing the benefits of RWAs to DeFi users on Sui. Tokenized real-world assets are entering their next phase of growth and NAVI’s sophisticated DeFi offerings on Sui create a potent environment to deploy one of the most widely adopted yield-bearing assets backed by US Treasuries.

Ready to start using USDY on NAVI Protocol? Learn more about NAVI’s offerings and begin earning today at NAVI Protocol.