NAVI Protocol & Lorenzo Protocol Bring stBTC on Sui
TL;DR
- NAVI Protocol has collaborated with Lorenzo Procol, the Bitcoin Liquidity Layer, to bring access to stBTC on the Sui Network
- NAVI has listed the stBTC pool on the lending protocol
- stBTC from Lorenzo Protocol is a Liquid Staking Token (LST) that represents staked Bitcoin (BTC) within the Lorenzo ecosystem.
- stBTC is an innovative approach to Bitcoin staking, aimed at providing Bitcoin holders with the benefits of DeFi participation without sacrificing the security or long-term value of their Bitcoin holdings.
- The NAVI x Lorenzo Collab aims to combine the benefits of stBTC with the advanced lending/borrowing opportunities of the protocol and enable users to utilize this highly appreciating asset across the entire Sui DeFi ecosystem.
Bitcoin remains the undisputed leader in the blockchain industry primarily due to its market dominance, first-mover setting, and Lindy effect. Bitcoin has become synonymous with cryptocurrency, driving mainstream awareness and showing that mass adoption is only a question of time.
Holding more than 60% of the industry’s value, the potential for decentralized finance in BTC counts in trillions of US Dollars.
As the most scalable and secure Layer-1 blockchain currently on the market, Sui is the perfect opportunity for BTC DeFi to thrive. To accelerate this adoption, NAVI, as the inaugural liquidity layer on Sui, collaborates with established and dependable BTCFi projects in the industry.
With its variety of BTC-based products and LSTs, Lorenzo Protocol stands out as an ideal platform for NAVI to expand BTC’s role in the Sui ecosystem.
Consequently, NAVI listed stBTC, aiming to boost BTC liquidity on the chain and provide more capital efficiency through lending and borrowing.
NAVI Thrives to Transform the BTC DeFi Landscape
Landing and borrowing against BTC-based assets is the next stepping stone in DeFi. With nearly $2 trillion in BTC at its current market value, only a small fraction of this liquidity is utilized in DeFi. However, BTC’s constant appreciation and store-of-value property push investors to look at BTC as collateral instead of an asset they can sell for profit.
Collateralizing Bitcoin to borrow liquid funds such as stablecoins is becoming the original cryptocurrency’s most intuitive and normalized utilization.
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Listing stBTC is NAVI’s first step towards providing BTC investors with a scalable, secure, and streamlined lending platform that opens the door for Bitcoin investors who want to explore the benefits of Sui DeFi.
Incentivizing borrowing stablecoins against BTC will open more vehicles for bringing liquidity to the chain, hereby maintaining and growing the lifeblood of the network.
Understanding Lorenzo stBTC and its Synergy with NAVI
Lorenzo Protocol offers several benefits in the realm of Bitcoin liquidity and DeFi integration, such as Liquid Staking Tokens (LSTs) and Liquid Principal Tokens (LPTs) like stBTC which allow users to stake their Bitcoin and still maintain liquidity.
This means users can use or trade these tokens within DeFi platforms while still earning yield from staked Bitcoin. This adds unprecedented flexibility to manage investments more dynamically and retain full capital efficiency.
This liquidity allows stBTC investors to plug their assets into liquidity platforms like NAVI and take advantage of the benefits DeFi has to offer — such as yield farming, lending, using stBTC as collateral, advanced yield strategies across protocols, etc.
It’s important to note that stBTC earns yield from various sources, including staking rewards from Bitcoin staking on platforms like Babylon. Combining these yields with NAVI’s supply and borrow incentives allows users to access multiple revenue streams at once.
Opening up stBTC to be used as collateral for borrowing Sui-based assets pushes more asset utilization across the entire ecosystem. Bitcoin investors can experience the improved capital efficiency provided by DeFi and the innovation pushed by the incredible Dapp builders on Sui.
Finally, it’s worth noting that NAVI is already working with other BTCFi protocols for upcoming integrations that will ensure higher diversification and inclusiveness of LST BTC holders across the entire industry.
About Lorenzo Protocol
Lorenzo Protocol is the Bitcoin liquidity layer, offering breakthrough Bitcoin financial instruments to advance BTC savings performance and triumph in the booming Bitcoin DeFi landscape. Powered by a breakthrough decentralized token economy comprising enzoBTC (wrapped BTC standard), stBTC (staking receipt token), and yield-bearing tokens, Lorenzo distributes on-chain Bitcoin liquidity across DeFi, empowering depositors with premier yield opportunities.
For creators of Bitcoin financial products, Lorenzo provides seamless access to liquidity through a global network of market makers, trading venues, and liquidity providers.
About NAVI Protocol
NAVI is the inaugural liquidity protocol native to the Sui network. It seeks to establish the cornerstone for chains based on the Move system and aspires to be the premier liquidity protocol in the Sui DeFi ecosystem. It has earned the trust of 800k years as the main lending, borrowing, and liquid-staking protocol built on Sui.
NAVI delivers a secure, one-stop liquidity solution through time-tested innovations such as Automatic Leveraged Vaults, Asset Isolation Mode, and Flash Loans.
The One-Stop Liquidity Protocol on Sui 💧
