The Sui Foundation has recently unveiled its support for native USDC on the Sui network, marking a significant development in the decentralized finance (DeFi) landscape.
NAVI, the leading DeFi and liquidity protocol on Sui, is set to integrate Circle’s USDC from day one, boasting an impressive $120 million in USDC liquidity—making it the third-largest supply of USDC in the industry, following Aave and Compound.
This integration is poised to enhance capital efficiency and improve user experience within the Sui ecosystem. By fully supporting native USDC, NAVI will offer a range of features, including a dedicated liquidity pool and flash loan capabilities, which are expected to promote broader adoption of the Sui network.
The introduction of native USDC simplifies transactions and boosts liquidity, allowing users to access USDC directly on Sui. This change is further supported by the Cross-Chain Transfer Protocol (CCTP), which minimizes delays typically associated with bridge withdrawals, setting a new benchmark for blockchain efficiency.
Native USDC stands out from bridged USDC (wUSDC) by ensuring that the asset is fully backed and can be redeemed at a 1:1 ratio for US dollars, fostering trust among developers and users.
NAVI Protocol aims to enhance asset composability on Sui by integrating native USDC into its lending and borrowing liquidity pool, encouraging users to shift from bridged USDC to its native counterpart.
A detailed migration plan will be released soon, outlining the steps for a smooth transition to native USDC, which is expected to further strengthen the Sui DeFi ecosystem. Overall, this initiative represents a significant step forward in enhancing the functionality and appeal of the Sui network.
