Session 05 Deep Dive DeFi v1

Summary

Cynthia from Su Foundation delivers an insightful presentation on the rapid growth of the DeFi ecosystem on Sui, highlighting its exceptional performance with high TPS, low gas fees, and fast finality. She emphasizes Sui's security and parallel execution capabilities, showcasing the diverse range of DeFi applications, from lending and DEXs to derivatives and yield protocols, which have significantly contributed to the ecosystem's impressive TVL growth from $1M to a peak of $750M within a year.

Takeaways

• 😀 Cynthia, an employee of Su Foundation for over a year, is presenting updates on the rapidly growing DeFi ecosystem.
• 🌐 Swiss Tech is highlighted as an ideal platform for DeFi applications due to its high transaction per second (TPS), low gas fees, fast finality, and security features.
• 🚀 Since its launch, the DeFi ecosystem on Swiss Tech has seen significant growth, with the total value locked (TVL) peaking at $750 million, showcasing its potential.
• 💡 The growth of DeFi on Swiss Tech is attributed to its ability to overcome limitations of Ethereum, such as high gas fees and slow transaction speeds.
• 📈 The ecosystem has attracted a variety of projects, including decentralized exchanges, lending protocols, derivatives, and yield protocols, contributing to its diversity and robustness.
• 🔒 Security is emphasized as a critical aspect for both end-users and project builders, with Swiss Tech's Move language offering inherent security advantages.
• 📊 TVL is identified as a key metric for assessing the growth and confidence in a DeFi ecosystem, with Swiss Tech's TVL growing exponentially within a year.
• 💼 The DeFi ecosystem's volume is a rich metric indicating the utilization of liquidity by participants, reflecting a healthy and active market.
• 💰 The majority of Swiss Tech's TVL comes from lending protocols, decentralized exchanges, and liquid staking protocols, indicating the popularity and trust in these services.
• 🔄 Liquid staking is presented as a way to align interests between ecosystem participants and validators, offering yield opportunities while maintaining blockchain integrity.
• 📈 Automated Market Makers (AMMs) and order book designs are discussed as integral to the DeFi ecosystem, providing instant liquidity and composability for various financial services.

Q & A

Who is the speaker in the video script?

The speaker is Cynthia, who has been with the Su Foundation for more than one year and is currently focusing on apad growth and the defi growth.

What is the main focus of Cynthia's presentation?

Cynthia's presentation focuses on the latest updates on the growing defi ecosystem, discussing why Sui is built for Defi, an overview of the defi ecosystem, and existing defi protocols on Sui.

What are the main advantages of Sui for Defi applications according to Cynthia?

The main advantages of Sui for Defi applications are its exceptional performance with high transaction per second (TPS), low gas fees, fast time to finality, high security, and parallel execution.

What is the significance of the number 297,000 in the context of Sui's performance?

The number 297,000 represents the record high transaction per second (TPS) that Sui can handle, indicating its ability to support a high volume of transactions for Defi applications.

What is the total cost of minting 100,000 NFTs on Sui as mentioned in the script?

The total cost of minting 100,000 NFTs on Sui is less than $500, highlighting its low gas fees.

What is the role of the consensus engine 'Mystic' in Sui's Defi ecosystem?

Mystic is Sui's newest consensus engine that contributes to the fast time to finality, ensuring that transactions are confirmed quickly, which is crucial for the efficiency of Defi applications.

How has the Sui ecosystem grown in terms of total value locked (TVL) since its mainland launch?

The Sui ecosystem has grown its TVL from $1 million at the time of the mainland launch to a peak of $750 million, representing a 21,000% growth on a yearly basis.

What are the key metrics that Cynthia discusses to understand the development of the Sui Defi ecosystem?

The key metrics discussed include total value locked (TVL), trading volume, and asset types on Sui, which provide insights into the growth, liquidity usage, and asset diversity within the ecosystem.

What is the significance of the 'dbook' in the Sui Defi ecosystem?

The 'dbook' or on-chain order book is an innovation in the Sui Defi ecosystem, offering a centralized exchange trading experience with all trading activities performed on-chain, which is a key differentiator and enabler of wholesale liquidity across Defi.

Which protocols are mentioned in the script as major players in the Sui Defi ecosystem?

The major players mentioned include Halo, W, Aftermath in liquid staking; Cers, Korea, and Aftermath in decentralized exchanges; Na'vi, Scallop, and Swan in lending protocols; and Bluing and Tapers in derivatives.

How can interested developers get more information about building on Sui?

Interested developers can follow Sui's Twitter account for updates and information. Cynthia also suggests visiting the booth of Scallop, one of the lending protocols, for more insights into their development experience on Sui.