Sui’s First ‘State Of Sui DeFi’ Report - Part 1

Among the many rising platforms, Sui is one of the most promising.

We put out this article to help you understand Sui’s potential. Let’s see what Sui is all about.

Sui: Built for DeFi

Technology is vital in traditional and decentralized finance and is what gives users a competitive edge. This is why some of Sui’s architectures are object-centricity, parallelism, and programmability. These features make it one of the top platforms for on-chain finance.

Sui’s consensus mechanism operates on speed and efficiency. It makes Sui the fastest among all L1 blockchains. this blockchain is ready to take things to the next level with the Narwhal upgrade. Upgrading Narwhal to Mysticeti in 2024 places Sui at the front of DeFi platforms. With this upgrade, on-chain trading is ultra-fast. It will lead to various trading strategies. All Sui’s DEXes feature lightning speed, making them the best option for traders.

Source: X
Sui Architecture & Developer-Centric Environment

Sui’s architecture enables various use cases across DeFi to run in different capacities. It means that activities in one of the nodes in the network will not have an impact on other nodes in the network. For traders, you can execute trades across various assets without network hindrance.

Sui focuses on developer experience while leveraging the Move programming language. The Move programming language is secure and flexible by design. It allows developers to work with fewer risks tied to the older smart contract languages. Move’s adoptable nature allows for shortened cycles, as demonstrated by SuiLend.

Source: X
Innovations in Transactions & Sui’s Offerings

Another unique aspect of Sui is the programmable transaction blocks, PTBs. The PTBs enable many transactions with DeFi applications with a single click. The PTBs create a high level of composability in DeFi. It unlocks new functionality and experiences for DeFi enthusiasts. For instance, you can carry out large order swaps with a single transaction. This feature is beneficial for traders and developers. It saves time and resources; less transaction time means fewer transaction fees.

There is a growing DeFi economy on the Sui Network, and more than 20 projects are ongoing. These projects include DEX, lending, liquid staking, derivatives, and collateral lending positions. It climbed into the top 10 within six months based on liquidity and volumes across DeFi platforms.

Source: X
Sui’s Total Value Locked (TVL) & On-Chain Volume

By March 2024, Sui had moved $750 million in TVL from starting at zero very recently. TVL measures the assets available on-chain for different services. It indicates the health of a project. Most of Sui’s liquidity is from lending protocols and DEXs. Scallop & Navi are on the lending side, and Cetus, kriya & aftermath are on the DEX side.

Another evidence of Sui’s expanding ecosystem is the high volume of on-chain trading. The average trading volume of derivatives and spot for the two weeks was $166 million and $125 million. This value was for two weeks beginning March 12, 2024. High trading volume relative to TVL shows high levels of network activity. BlueFin executes the most derivatives operations, while Cetus performs the most spot transactions.

Source: X
Assets on Sui

Sui TVL includes native SUI tokens, stablecoins, and non-SUI unstable coins or tokens. Stablecoins like the USDC and the USDT, imported from Ethereum through the Wormhole bridge, dominate the network’s TVL figures.

First Digital shared plans to launch its stablecoin FDUSD natively on Sui, with more native stablecoins. CETUS, NAVX, and SCA are the native SUI and DeFi protocol tokens contributing to Sui’s TVL. Here is the second part of this article.


The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


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