Sui’s Navi Protocol has become a significant player as the protocol recently announced a major milestone, securing $2 million in funding. This infusion of capital is set to boost Navi’s ambitions to expand its DeFi platform and complete its recent acquisition, marking a robust moment for the company and its users.

Navi Protocol Aims To Expand Lending And Borrowing Services

NAVI Protocol, a one-stop liquidity protocol to Sui, recently announced a successful $2 million funding round. This significant financial injection is set to boost the expansion of its unique all-in-one lending, borrowing, and LSDeFi platform. The funding round saw a joint leadership by OKX Ventures, dao5, and Hashed, accompanied by an impressive line of investors including Mysten Labs, Comma3 Ventures, Mechanism Capital, GeekCartel Capital, Nomad Capital, Coin98 Ventures, Cetus Protocol, Maverick, Viabtc, Assembly Partners, Gate.io, Hailstone Labs, Benqi, and LBank Labs.

📢NAVI Protocol is proud to announce that we have raised $2M co-led by @OKX_Ventures, @daofive and @hashed_official to expand the first all-in-one lending, borrowing and Liquid-Staking Platform on @SuiNetwork

Participants:@Mysten_Labs @comma3vc @MechanismCap @CetusProtocol… pic.twitter.com/508NrU8YNO

— NAVI Protocol | navi.sui (@navi_protocol) January 31, 2024

A notable protocol in the Sui ecosystem, NAVI Protocol improves user participation as liquidity providers or borrowers. This Move-based protocol offers innovative features that allow users to maximize their assets and explore new trading avenues with reduced risk. Since its launch on the Sui mainnet 8 months ago, NAVI Protocol has witnessed remarkable growth, onboarding over $150 million in total value locked (TVL) and serving 800,000 users. This growth has led NAVI to dominate the Sui platform in lending volume, maintaining its position as the number one protocol by TVL for several consecutive weeks.

The fresh funding will enable NAVI Protocol to widen its services and scale its operations. An integral part of this expansion includes the recent acquisition of Volo, a leading Liquid Staking protocol on Sui. Additionally, the team is set to develop its multi-asset collateral strategy, balancing the lending of volatile assets with liquidity requirements.

Ryan Kim, Founding Partner at Hashed, said, “NAVI Protocol is emerging as a beacon of innovation, offering a one-stop liquidity shop that seamlessly integrates liquid staking and money market solutions across multiple ecosystems, starting with Sui. NAVI Protocol’s battle-tested team, which has navigated the competitive Sui landscape, is a testament to their resilience and dedication. Hashed is excited to support NAVI Protocol as they expand their Move commitment. We believe in their ability to drive change and create value in the rapidly growing Move space.”

NAVI’s Flash Loans And New Pool Features

Navi protocol is poised for significant expansion with the introduction of new features in the coming months. These developments, particularly the introduction of flash loans and isolated pool functionality, represent a substantial leap in the protocol’s capabilities and market reach, both within and beyond the Sui ecosystem.

Flash loans are one of the most innovative and needed features in the DeFi market. They allow users to borrow assets without collateral, under the condition that the loan is borrowed and repaid within the same transaction block. This unique mechanism opens up a wide range of possibilities for users, including arbitrage, collateral swapping, and self-liquidation.

For NAVI Protocol, integrating flash loans into its system is a game-changer. It not only enhances the platform’s functionality but also attracts a sophisticated user base.

Alongside flash loans, NAVI Protocol plans to implement isolated pool functionality. This feature allows for the creation of separate liquidity pools for individual assets or specific sets of assets. The significance of isolated pools lies in their ability to limit risks associated with asset volatility and inter-pool contagion. By isolating pools, the protocol can safeguard against systemic risks, ensuring that the issues in one pool do not affect the others.