The future of lending on Sui

everybody. We have everybody on board today as speakers that we have planned and welcome everybody to this X-Paces together with Sui Network, L.E.S. Coal founder of Navi, Charles Coal founder of Navi in Chandvaria, General Manager of on-chain finance at Mist and Labs. Welcome guys. Can we please do a really quick sound check with everybody on the speaker side so to see if we're all good and we can get started with this exciting space about the future of lending. Absolutely. Great to have you here, Ivan. Yeah. Hey everyone. Hey folks, nice to be here. Yeah, super excited to be here guys. Awesome. It looks like everything is working on on on everyone's side. Welcome everybody. So today's conversations goes a little bit beyond the product launch. As some of you might know in the audience, Navi launched Navi Prime last week which is isolated markets but there's more to it. So we'll be discussing how on-chain lending needs to evolve as a new class of capital enters the market for until now and throughout much of the device history. Lending has been built around share liquidity pools like Navi and that model has worked quite well until now, helped the industry scale, made on-chain boring, accessible to millions of users across the globe, debanked a lot of people, awesome stuff. But as we can see that institutional capital is looking for something else like tokenized assets and bit-connective liquidity. Start begin to move on-chain the requirements of these players are changing. They need this participant need a clear understanding of where their capital is deployed, how each market is structured and how risk is managed. They are looking for isolated risk, predictable parameters and capital efficiency that reflects the quality of the assets involved, which is why Navi Prime was created. Today we will explore why lending is evolving beyond the traditional share pool model and how Navi Prime introduces a more modular and transparent framework and why Sui of course is the ideal foundation for this of on-chain finance. We will also leave some time for questions in the community towards the end. So feel free to submit some questions in the comments of the spaces, share the spaces with your friends as well. Get them on board to listen to these exciting things that are happening. As don't forget that DEFI lending is one of the corner storms of DEFI and on-chain finance. So with that we can get started. Let's give our speakers a couple of minutes to introduce themselves and we can go from there. Let's start with the OSCO. Hey everyone, this is Alaskop here. Super excited to be back at this Twitter space after three years of our major product launch. Really pleased to have Shion join the Twitter space today. So yeah, just want to give a quick say hi first. Thanks. Adi folks, I'm Shion. I lead DEFI at Missed in Labs across the board working with our ecosystem founders to really help bolster kind of on-chain TBL volume and open interest. You know, I come from career and technology and product development more most recently as I got it for the past five years leading product there. But yeah, great to be here. Excited chat. Hey everyone. Hey everyone, this is Charles. I'm the co-founder of Navi and primarily working on the product and engineering. I've been working on the Navi prime product with a team and Navi here for almost half a year. And if you want to know the like all the nitty-gritty details about Navi prime, I'm the person to ask any question about. Awesome. Thanks guys for this short introduction. I think we can get started with the with the meet of the discussion here. So this first question is directed to telescope. And so telescope, can you give us a little bit of background of Navi and yourself and where lending is heading towards and how does it need to evolve? Absolutely Ivan. Why join the Twitter space? I saw a lot of familiar faces. You know, even from a couple of years ago through thank you all for being here. Just want to give everybody who has been new to this Twitter space as well as hearing about Navi for the first time maybe. The swim for multiple times, the literary context. Charles and I, we started Navi back in 2023 early at the end of 2002 and to build a DeFi protocol that is much more scalable with the much more efficient gas costs that can really powers billions of users to build DeFi and application on top of this. You know, fast forward looking back after launching with the most amazing network, three network over the past three years, we very, very, you know, probably a few big numbers. We did 30 billions of landing volumes, we did 10 billions of deposit volume and with over 1 million of users across US, Southeast Asia, you know, Europe across the global. This has been tremendous amount of growth over the past three years, over a thousand days operating the Navi protocol. And you know, we were very proud and very honored to have a super niche close to 2020, super expert team, expert based team to operate this DeFi and hitting 1 billion RTVR with and distribute over 60 millions of rewards to users over the past three years since launch. Like since they won when we launched the protocol, we selected the sweet and the most, you know, trusty layer to execute. And I will adopt it as a business model which is this kind of like surely query pool has been incredibly the fundamental backbone of the DeFi and for the Navi as the first phases because we build the trust based on two principles. Number one, for emerging market, the unified surely query pool model is much more efficient for capital efficiency. And number two, for emerging market, there hasn't been too much diversity in terms of exotic asset class to be there yet. So the tradeoff between capital efficiency versus the use cases, we eventually find the capital efficiency to be the backbone that can sustain and grow with the ecosystem. And over the past three years, the CISIS has been proven mostly correct. We hit all those big numbers as above state. However, up three years, you know, at the front door of 206, where we start to realize is the past model model was good for boost driving the early days. However, as the DeFi spaces getting much more competitive, we definitely need to find the much more balanced way to cater towards different players within the space. For example, this Navi Prime, the curated capital market, there are three core players within this place. Number one, the liquidity provider. Number two, the curator. And last but not least, the platform itself of us as Navi. And each of us plays a significant important role in guarding the security and sustainability of the platform. Liquidity provider with no doubts providing stablecoins any asset class inject to the liquidity pool to earn e-outs by, you know, providing lending their liquidity now. The curator comes in as an expert to do all those due diligence in terms of risk control and analyzing the utilization of variety of exotic pool asset class and find the balance between the best e-outs as well as the security that they can take home. You know, and then basically there, the middleman that finds a balance between the platform as well as the liquidity provider. And last but not least, the platform itself is responsible for creating and creating all those isolated market where each asset have their safe hub to deploy the liquidity as well as to engaging any kind of risk, risk on landing and boiling activity. So throughout this three way of balancing and protecting the ecosystem, you know, we want to make each party to be whole responsible for their part of job. And you know, for this ecosystem to grow much more robust. And the reason why we start in this innovation is really because once we hit 1 billion dollar TBR, we start to realize, well, you know, at that time, when we hit 1 billion dollar TBR, the biggest depositor deposit over 30 million of liquidity. However, if we really want to become 5 billion, 10 billion, even 100 billion, when those big wealth coming to place, we will be asking who can ensure the security, you know, the deployment of funds is much more well balanced. So that is the necessity why such a role of curator will is definitely needed in the space. You know, if we're looking at the, the more a few years ahead fast forward developing is ecosystem like EVM and BNB, chain ecosystem. They're having like four, four players like Moffo and Lista, a variety of players having proven that record, have been proving this business model like had tremendous amount of market attention and institution is very well coming towards this. So yeah, so that's why we can't wait to be the first one to release this Navi Prime, the curated cap to market to the broader, the most scalable three ecosystem. So yeah, it's super exciting to be back here after years talking about innovations. Yeah, handing the mic back to you, Evan. Thank you for that. Realtveance, Eliscope, I think it really shows how this is kind of different than how it works compared to classic models. So my next question is toward directed to Sean. So what do institutions actually need? So you have spent time, it's a considerable time building infrastructure and the ecosystem to bring more institutional capital on chain. We've seen this over and over over the years throughout infrastructure, throughout apps, et cetera. But attracting institutions requires more than just scalability or technical performance. The product is built on top of that infrastructure. Also need to meet a very different set of expectations, unlike retail users. So Sean from your conversations with institutions and professional capital allocators, what are they actually looking for when they evaluate a chain for DeFi, for example? What standards do they expect? Yeah, awesome. Thanks. The way I like to think about institutions is that the name of the game is all about risk management. When they're coming on chain, institutions are broadly looking for two things. They're either looking for wider geographic distribution to a new set of users that they otherwise can't access through their existing capital base, or they're looking for novel structured products that either target a higher risk reward or higher liquidity or lower liquidity trade offs, depending on the product that you're building. And I think if you lean into that, it's fine and dandy to say like, hey, yeah, we can do this with whatever L1 and chains that we want. But really the name of the game becomes how do you manage risk throughout the stack, you know, everything from economic risk down to or hold down to smart contract risk? And I think, you know, as we look at something like Navi Prime, what you really see is that ability to isolate risk in a structured way so that an institution has access to just the set of collaterals that they care about, as well as the risk parameters that they care about in a much more granular way than a pool model. Now, you know, let's go ahead and like these are just trade offs along the spectrum. You know, if you look at the capital efficiency of a pool model, you can easily aggregate a lot more liquidity. However, when you're an institution and you are having a user, you're like a coin base and you're having your users deposit in the morpho, you want much more granular controls over the risk parameters that are handling the markets. So, you know, this is where I think, you know, products like Morpho products like Navi Prime are, you know, key unlocks for institutions because before, you know, they're getting allocated into pooled model, they have all these other risks that they have to deal with that exist that are totally orthogonal to what they are actually doing.