Session 05 Deep Dive DeFi v1
Summary
TLDRCynthia 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.
Outlines
🎤 Introduction to Su Foundation and DeFi Ecosystem Growth
Cynthia, a member of the Su Foundation for over a year, introduces herself and outlines the agenda for the DeFi ecosystem showcase. She highlights her focus areas including apad growth and defi growth. The presentation aims to discuss why Su is built for DeFi, provide an ecosystem overview, and talk about existing DeFi protocols on Su. Cynthia emphasizes Su's exceptional performance with high transaction per second (TPS), low gas fees, and fast finality, which are critical for DeFi applications. She also mentions the transition from Ethereum to Solana and then to Su for better scalability and security in DeFi applications.
🌐 Su's DeFi Ecosystem Overview and Metrics
The second paragraph delves into the specifics of Su's DeFi ecosystem, which currently hosts over 20 active projects ranging from decentralized exchanges to lending protocols. Cynthia discusses key metrics such as Total Value Locked (TVL), which signifies confidence in the ecosystem and liquidity availability, and how Su's TVL has grown exponentially since its launch. She also covers daily active wallets, trading volumes, and the distribution of TVL across different types of assets, emphasizing the ecosystem's maturity and potential for further growth.
📈 Analysis of Su's DeFi Ecosystem Components
In this section, Cynthia breaks down the components of Su's DeFi ecosystem, focusing on liquid staking, decentralized exchanges (DEXs), and the innovative on-chain order book (dbook). She explains the importance of composability and interoperability in DeFi protocols and how they contribute to the ecosystem's value. The paragraph also highlights the significant contributions of lending protocols, automated market makers (AMMs), and perpetual exchanges to the TVL and trading volume, showcasing the diversity and strength of Su's DeFi offerings.
💡 Exploration of DeFi Protocols on Su
Cynthia provides an in-depth look at specific DeFi protocols on Su, including liquid staking, DEXs, lending protocols, derivatives, and yield protocols. She discusses the role of liquid staking in aligning interests between ecosystem participants and validators, the design and benefits of automated market makers, and the innovative aspects of Su's on-chain order book. The paragraph also covers the importance of lending protocols, the functionality of perpetual exchanges and options, and the role of yield protocols in aggregating strategies, emphasizing the comprehensive nature of Su's DeFi ecosystem.
📚 Conclusion and Call to Action for Su's DeFi Ecosystem
In the concluding paragraph, Cynthia summarizes the key points of her presentation, emphasizing Su's technological suitability for DeFi with its high TPS, low fees, and security. She highlights the rapid growth of Su's DeFi ecosystem and its diverse range of applications. Cynthia encourages the audience to follow Su's Twitter accounts for updates and to engage with the community. The presentation ends with applause and music, signifying a successful showcase of Su's DeFi ecosystem.
Mindmap
Keywords
💡DeFi
💡Sui
💡TVL
💡DEX
💡AMM
💡Liquid Staking
💡Lending Protocols
💡Derivatives
💡Yield Protocols
💡CDP
Highlights
Introduction of Cynthia, the speaker, and her role in the Su Foundation focusing on Apad and DeFi growth.
The Su Foundation's DeFi ecosystem is robustly growing, with Cynthia sharing the latest updates.
Su Tech is well-suited for DeFi applications due to its high performance, low gas fees, and fast transaction confirmation.
Sui's transaction per second (TPS) capability is exceptional, reaching a record of 297,000.
Low cost of transactions on Sui, with the total cost for minting 100,000 NFTs being less than $500.
Sui's introduction of 'Mystic', a new consensus engine, enhancing transaction finality.
Sui's parallelizable architecture allows for efficient transaction execution in a single transaction.
Security is a priority in Sui, with the Move language providing inherent security advantages.
Sui's DeFi ecosystem has attracted experienced builders and serious founders, impressed by Sui's performance.
Sui's DeFi ecosystem has grown TVL from $1 million to a peak of $750 million within a year.
The importance of Total Value Locked (TVL) as an indicator of ecosystem confidence and liquidity.
Breakdown of Sui's TVL, with lending protocols, decentralized exchanges, and liquid staking protocols being the majority.
Sui's trading volume metrics indicate a healthy ecosystem with real product-market fit.
Asset types on Sui, with a focus on native Sui tokens, stablecoins, and other project assets.
Liquid staking on Sui aligns interests between ecosystem participants and validators.
Decentralized exchanges (DEX) on Sui offer real-time transactions with both AMM and order book designs.
Innovative dBook on Sui, an on-chain order book that offers a centralized exchange trading experience.
Lending protocols on Sui contribute to over $300 million in TVL, with notable players like Na'vi, Scallop, and Swan.
Derivatives on Sui, including perpetual exchanges and options, offering leveraged trading and risk management.
Yield protocols on Sui, such as Mo and Strat, offering aggregated yield strategies for capital efficiency.
Collateralized Debt Position (CDP) protocol on Sui, allowing users to mint stablecoins by collateralizing assets.
Encouragement for developers interested in building DeFi applications on Sui to start now.
The diversity of DeFi applications on Sui, ranging from liquid staking to derivatives and yield protocols.
Invitation to follow Sui's Twitter account for updates on the ecosystem and its developments.
Transcripts
[Music]
hey everyone how are you guys thank you
so much for coming to sleet showcase
today I know it's Lun time and I really
appreciate everyone sitting here uh just
a quick introduction about myself my
name is Cynthia and I've been with Su
foundation for more than one year um and
currently my main areas of FOC
cover apad growth and the defi growth so
today so today is actually my greatest
pleasure to be on the stage and share
the latest update on our robustly
growing defi ecosystem I'd like to walk
you through our main agenda today
starting
with um sorry can we go back to uh the
previous
slide yes so the main agenda for today
includes first of all I'd like to talk
about why s tack is buil for Defi and
then we'll be moving into talking about
defi ecosystem overview and lastly we'll
be talking about existing defi Protools
onu so since a Mainland launch last year
defi has actually been the Fest growing
vertical among all a lot of people have
been actually asking me what's the
secret source of this magic growth to
answer this question we need to firstly
talk about Swiss Tech and why it's
perfectly built for our defi
applications defi Summer started in J 21
on ethereum as many of you guys know but
soon people started realizing that
ethereum are limited to Future defi
growth due to its high gas fees low
transaction per second TPS and a
relatively long confirmation time in
2021 salana disrupted the web three
Space by introducing a much faster and
higher TPS chain and in 2023 s b out of
mattera is now offering even better
technology for defi applications s has
exceptional performance High transaction
per second with a record of
297,000 and low gas fees the total cost
of M 100,000 nft on S is less than $500
US can you believe that
and on top of that um SS s has fought
his time to um finality especially with
the introduction of of Mystic our um
newest consensus
engine uh sorry I think like I kind of
can can we go back to the previous slide
uh one one slide before
sorry uh can we go back to the slide
before
that yeah and besides exceptional
performance s paralyzable architecture
ensures that uncurated defy applications
can actually get executed in just one
transaction greatly enabling the
transaction
efficiency an exception performance and
parallel execution actually lay a solid
foundation for developing defi
applications on suite and what's more on
top of that security fun security is
actually the most important for both end
users and project Builders move language
has an inherent Advantage being highly
secure making it super easy for
developers to avoid threats and prevent
vulnerabilities so basically in summary
ex exceptional performance that is based
on high transaction per second low gas
fees and farest time to finality along
with high security and parallel
execution really guarantee a success of
defi applications on
site so over the past one year since the
mainland launch in may we have not only
seen early stage Builders but we have
also acquired exper bar serious Founders
building defi applications onu and
they're greatly impressed by s's
unmatchable performance here are two
quotes from our experienced project
Builders one is from swand the team who
actually builds one of the best lending
protocols on salana swand team was
greatly impressed by the easiness of
developing onu so that they could
actually ship the product much faster
than what they expected and sits one of
our linked dexs highly pres Swiss
ability to combine transactions and
customize transaction blocks so that
large order swap that require
interacting with multiple posts can
actually get executed in just one single
transaction and uh speaking of all the
things I just mentioned um um if you are
like a developer who is interested on
building Diva applications on Swift
please start it now
so having known that why swis tag is BU
for defi now it's time for us to take a
deeper dive into the defi ecosystem
onu So currently we have over 20 plus
projects actively building onu ranging
from decentralized exchange Landing
protocols derivatives and Y protocols
highest daily active wallet on record
reaches 2.45 5 million highest total
value locked reaches a peak of $750
million and 24hour trading volume
maintains around $1 100 million US
dollar and these are incredible
achievements for such a nent ecosystem
was just one year of Journey and that's
a join effort among our existing
Builders Miss and lab s foundation and
everyone sitting here so we greatly we
greatly appreciate your support to S
network
so to better understand Swiss defi
ecosystem we need to demystify key
metrics behind so let's start with
talking about the most important metric
that you will be seeing everywhere about
defi growth we're going to talk about
the total value locked
tvl so I guess like you will be asking
why tvl is such an important indicator
and there are two main reasons for that
the first reason is T is a
straightforward measurement of retail
and institution confidence because they
trust the security of the ecosystem and
therefore retails and institutions are
comfortable with depositing funds into
the ecosystem so in general the higher
the tvl the stronger the confidence
others have within the ecosystem and the
second reason is that tvl process how
many assets on chain that decentralize
application can actually use for their
liquidity having enough liquidity is
super crucial to a healthy defi
ecosystem and over the past one year we
actually grow Swiss tvl from1 million US
dollar since the mainland launch to the
peak of 750 million US dollar and that
equals to
21,000% growth uh on a yearly basis
currently the majority of Swiss tvl stem
from lending descent
decentralized exchange and the liquid
staking
protocols sorry can we go to the next
slide and now we take a closer look at
the breakdown of Swiss tvl the majority
of Swiss liquidity as I just mentioned
come from lending protocols
decentralized exchange and uh liquid
staking protocols lending and D account
for 90% of tvl in the Su Network in
particular on the lending side
scallop brings in about 1065 million us
and the na'vi brings in about $1 175
million us and contribute to the B of
liquidity meanwhile on the D side
liquidity is mainly driven by cers which
has over 100 million US dollar Korea
which has about5 million us and
aftermath that has 80 million
the next important metric in the defi
ecosystem is volume while tvl is more
commonly used to assess the growth of a
defi ecosystem volume is a much richer
metric because it process whether unin
liquidity is used or Not by defi
participants Swiss volume matric are
actually very healthy for super na
ecosystem indicating that Swiss def5 is
achieving real product Market fit as
Traders and defi participants source
that liquidity to really power Financial
Services as of late March 2024 the two
we moving average of onction derivative
and SP trading Val volume is 166 million
and 125 million respectively in the SP
Case C is actually drives about half of
the daily volume while the other half is
evenly spread across the rest of decks
and in the derivative case volume is
highly concentrated with blueing
powering over 90% of
volume and the last um metric that I
want to share with you guys is asset
type on sweep so tvl assets break into
three main categories on sweep volatile
assets stable coin assets and nonset
volatile assets under volatile assets
asss the native Suite is the main
contribution to tvl while followed by
other project uh assets and in addition
um MIM coins also represent a share of
volatile
asset and on the non volatile assets
more than $380 million Us doll stable
coins are actually bridging to s from
other ecosystem um such as
ethereum and all these three m Matrix
including assets type um trading volume
and the total value locks all speak to
the fact that even though s is a n
ecosystem the defi ecosystem is actually
super mature and it is up to a great
start having talk about why s Tech is
perfectly buil for Defi and deep dive
into specific metrics to understand the
development of sd5 EOS system now it's
time to look into specific defi
protocols onu and understand how they
are bringing a lot of values for the
general
ecosystem s has a really diverse defi
ecosystem with protocols ranging from
decentralized exchange lending liquid
staking to derivatives and Y protocols
all existing applications B leverage SS
composability and interoperability to
generate the effect of 1+ one greater
than two we started with talking about
liquid staking liquid staking aligns the
interest between ecosystem participants
and
validators users deposit their native
tokens into suet Network and earn around
a certain amount of yield from
validating tractions and maintaining the
blockchain's integrity and with this the
uh circulation of liquid staking tokens
we can see more LSD 5 project
to build a lot of more use cases on top
of the base liquid sticking protocol and
currently the uh the total value locked
from all the base liquid protocol stand
at $100 million US dollar and the major
players in this sub sector include Halo
W and
aftermath and now we're going to talk
about the next really important uh
application type onu decentralized
exchange and normal there are two really
popular designs of DX amm and unction
order book The whole idea behind having
decentralized exchange onchain is to
facilitate realtime transactions and
both amm and onchain order book um
provide a Vue for Market uh maker for uh
market makers as well as for liquidity
takers and the pck daily trading volume
from Dax currently stand at $100 million
Us doll
and now we're going to talk a little bit
more about the design of automated
Market maker automated Market maker is
based on the classic design of inverse
function x * yals to K to call the price
of asset X to Y instantly and the major
value proposition for having an
automaking Market maker on on any
ecosystem includes it provides instant
liquidity as you know like usually order
books need to match the bid and ask
offer in order to really facilit
transaction Auto make Team market maker
as a name suggest is able to qu a price
in real time as long as there is enough
liquidity and the second value
proposition for having amm is is highly
composable and it can be easily plugged
into any other uh protocol sound
suite and currently the major um players
under the deck include cers Korea and
after
math and now I'm going to share um about
one of the greatest Innovation on sweep
which is our unction order book dbook
and having an unction order book is
actually an innovation because there are
prerequisites for that to actually
happen the preconditions include the
underlying blockchain need to have high
TPS low gas fees and really Fest time to
execution and the S is bringing the
unction of the book to the next level
dbook offers centralized exchange
trading experiences and we believe that
can help us onboard even more users in
the future dbook is really a sweet key
differentiator because it performs all
trading activities on chain including
routing matching and setting orders and
it is a key enabler of wholesale
liquidity across all of
defi coming to the next learing Pro
calls as a is a next important pillar to
support the defi ecosystem lending
protocol enables one party to lend out
spell assets and while letting the other
party borrow needed
assets and and uh So currently the major
lending protocols contribute to more
than 300 million US dollar tvl onu and
the major uh players under this lending
sector include na'vi scallop and swand
and actually uh our existing uh lending
protocol scallop actually has a booth
over there so if you guys are interested
in learning more about uh their
developer uh developing experience on
site please feel free to go to their
Booth after uh after my
talk and then uh I want to talk more
about derivatives derivatives are also
set to a great start in the S defy
ecosystem Perpetual exchange allow
traders to open positions with leverage
if they have really strong directional
views or haging
requirements and options also help um
Traders hatch their spot positions uh as
well as provide potential R enhancement
opportunities for end users and under
the Perpetual uh sector we have blueing
which is an offchain orderable based
protocol that is bringing a lot of
trading volume and on the option side
tapers is building option vals that uh
greatly faciliate the capital efficiency
on
suite and currently based on our
observation average daily trading volume
from derivatives stand at $125 million
Us
doll and besides derivatives we also
have yel protocols that aggregate
different yell strategies the leading y
protocols onu include Mo which is a
leverage year farming protocol and Strat
which is which offers one click year
strategies and lastly um bucket is a
version of a lending protocol called
collateral collateralized Deb position
which allow users to meain stable coins
by collateralizing their existing assets
the stable coin bu has been accepted by
few defy and gaming application as
collateral for payment currency and
currently the tvl from CDP protocol onu
contribute to 25 million of the total TV
unlocked so uh as I just spent you know
uh some time walking through all
different kinds of defa applications on
Su I'm pretty sure you will be you will
be impressed by the diversity of
different s uh of different defi
applications currently actively building
on site
and and uh uh here is like almost come
to an end to my talk and this may really
sound like a long and Technical talk on
the overall EOS uh on the overall D5
ecosystem but I really hope that
everyone City here can remember three
main points when you walk out of the
door later so first of all sweet Tech is
perfectly built for defi it offers High
transaction per second low gas fees Fest
execution higher security and parallel
execution and the second point is s defi
ecosystem is the fastest growing uh Ecco
ecosystem compared to the rest of the
blockchain system and we actually grow
our from 30 million us to the peak of
750 million Us doll within just one year
and the last point that I highly
recommend you to remember is we s defi
ecosystem has a really robust and D
diverse def applications ranging from
liquid staking lending decentralized
exchange to derivatives and Y protocols
and if you guys are interested in
learning more about s and what's
happening on S please follow our Twitter
uh account this is our like major
English Twitter account and we also have
a a venomous Twitter account for anyone
who uh are based here locally so it's
time to put out your phone and scan the
QR code to keep your s updated with uh
all the major announcements on sweep and
thank you so much for coming today and
listening to this presentation I really
appreciate that
[Applause]
[Music]
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