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SUI ecosystem TVL rises, token price reaches a high point, overview of major Decentralized Finance projects development.
The native token of the Sui public chain (SUI) has recently shown a rise in price, with its valuation almost returning to the highest level since its launch, surpassing competitors in the MOVE system. At the same time, the total lock-up position (TVL) of Sui has also been continuously climbing, growing from $175 million in early December to $328 million by mid-January.
This steady rise in TVL may be a factor driving the recovery of SUI token prices. Behind the scenes, the Sui Foundation is promoting ecological development through various means, including developer funding programs, project funding programs, and education and support programs. As of January 12, a total of 86 projects have received $4.72 million in funding. Furthermore, Sui has also specifically supported liquid staking, announcing last December the contribution of 25 million SUI tokens to add liquidity for liquid staking tokens (LST) across various DeFi protocols.
SUI seems to be continuously providing token incentives for leading DeFi projects, with almost all major DeFi projects having officially allocated SUI token rewards. This strategy may create a virtuous cycle: the foundation incentivizes liquidity with tokens, promotes ecological development, and in turn drives the rise of the SUI price.
The following are the development statuses of several major DeFi projects in the Sui ecosystem:
NAVI Protocol: This lending protocol has experienced rapid growth recently, with its TVL increasing by 208% in the past month. Users can earn incentives in SUI, USDC, and USDT through deposits and borrowing. The protocol has not yet issued its own governance Token, which is expected to be released in the first or second quarter of 2024.
Cetus: As the largest decentralized exchange (DEX) on Sui, Cetus has long held the top position in Sui TVL. It has a close relationship with the Sui official team and has jointly hosted multiple events. During times of significant market volatility, trading pairs on Cetus can generate considerable returns.
Scallop: Another lending protocol that now offers SUI token rewards. Users can deposit into Lending Pools and then stake in sCoin Pools, or engage in circular borrowing to earn profits. Scallop has also not yet launched its own governance token.
DeepBook: This is an order book DEX built by the Sui Foundation and the MovEx team, and other DeFi protocols can integrate its liquidity. As a public good, DeepBook may not issue additional governance tokens.
FlowX Finance: FlowX is a DEX whose TVL continues to rise. Currently, providing liquidity on FlowX can earn SUI token rewards, and the annualized yield for stablecoin trading pairs can reach 36%.
Aftermath Finance: Provides LST, AMM DEX, and trading aggregator services. Its LST is afSUI and provides liquidity for its own LST. Currently, only a few liquidity pools offer SUI Token incentives.
KriyaDEX: This is a spot and perpetual contract DEX, characterized by allowing users to lock-up positions to obtain higher annualized yield.
Overall, the projects with high TVL in the Sui ecosystem are mainly concentrated in three categories: liquid staking, lending, and DEX. Liquid staking projects receive additional support from Sui, with an annual yield of around 30% across various DEXs; lending projects like NAVI Protocol have recently seen rapid growth; while DEX projects are developing steadily, with Cetus still maintaining its leading position.