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.

Outlines

00:00

🎤 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.

05:00

🌐 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.

10:01

📈 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.

15:01

💡 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.

20:03

📚 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.

Keywords

💡DeFi

DeFi, short for Decentralized Finance, refers to financial services that are built on blockchain technology and operate without the need for traditional intermediaries like banks. In the context of the video, DeFi is the main theme, with the speaker discussing the growth and development of the DeFi ecosystem on the Sui platform. The script mentions various DeFi applications and protocols being built on Sui, highlighting its robust and growing nature.

💡Sui

Sui is a high-performance blockchain platform designed for DeFi applications. It is characterized by high transaction throughput, low gas fees, and fast finality. The video script emphasizes Sui's exceptional performance metrics, such as its ability to handle 297,000 transactions per second, which makes it an ideal platform for DeFi applications as discussed by the speaker.

💡TVL

TVL stands for Total Value Locked and is a key metric in the DeFi space, indicating the total amount of value locked in DeFi protocols. The script mentions TVL as an important indicator of confidence in the ecosystem's security and liquidity. The speaker highlights the growth of Sui's TVL from $1 million to a peak of $750 million, showcasing the rapid adoption and growth of the Sui DeFi ecosystem.

💡DEX

A DEX, or Decentralized Exchange, is a platform that allows users to trade cryptocurrencies in a decentralized manner without the need for a central authority. The script discusses the presence of DEXs in the Sui ecosystem, mentioning both AMM (Automated Market Maker) and order book models, emphasizing the importance of DEXs in facilitating real-time transactions and providing liquidity.

💡AMM

AMM stands for Automated Market Maker, a type of decentralized exchange protocol that uses algorithms to set the price of assets based on the product of the reserves (x * y = k). The script explains the benefits of AMMs, such as providing instant liquidity and being highly composable, allowing them to be easily integrated with other protocols in the Sui ecosystem.

💡Liquid Staking

Liquid Staking is a process where users can stake their tokens to earn rewards and receive liquid staked tokens in return, which can be traded or used in DeFi applications. The speaker in the script discusses liquid staking as a key component of the Sui ecosystem, mentioning that it aligns interests between ecosystem participants and validators and contributes to the ecosystem's liquidity.

💡Lending Protocols

Lending Protocols are DeFi applications that allow users to lend or borrow assets. In the script, the speaker mentions that lending protocols contribute significantly to the TVL in the Sui network, with protocols like Na'vi and Scallop playing major roles, highlighting the importance of lending in the DeFi ecosystem.

💡Derivatives

Derivatives in the DeFi context refer to financial instruments whose value is derived from the value of an underlying asset. The script discusses perpetual exchanges and options as types of derivatives available on Sui, which allow traders to open leveraged positions or hedge their spot positions, indicating the ecosystem's maturity and the variety of financial products available to users.

💡Yield Protocols

Yield Protocols are DeFi applications that aim to optimize returns for users by aggregating different yield strategies. The speaker in the script mentions protocols like Mo and Strat, which offer leverage yield farming and one-click yield strategies, respectively, showcasing the diversity of yield optimization strategies available in the Sui ecosystem.

💡CDP

CDP stands for Collateralized Debt Position, a type of DeFi protocol that allows users to borrow stablecoins by collateralizing their existing assets. The script mentions the CDP protocol as contributing to the total TVL on Sui, indicating its role in enabling users to maintain stablecoin positions while providing liquidity to the ecosystem.

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]