Exploring DeFi on Sui: A Comprehensive Guide

Decentralized
Finance
(DeFi)
on
the
Sui
blockchain
offers
a
unique
and
powerful
ecosystem
for
users
and
developers
alike.
According
to

The
Sui
Blog,
Sui’s
native
primitives
empower
DeFi
applications
to
address
common
challenges,
such
as
liquidity
bootstrapping,
through
tools
like
DeepBook.

DeFi
on
Sui

In
many
DeFi
ecosystems,
users
face
friction
points,
especially
when
new
to
Web3.
Sui
eliminates
the
need
for
approval
transactions
due
to
its
object-oriented
architecture,
streamlining
DeFi
activities
and
making
them
more
user-friendly.
Gas
fees
and
transaction
speeds
are
crucial
in
DeFi,
and
Sui
excels
in
both
areas.
Sui’s
gas
fees
are
low
and
stable,
thanks
to
a
gas
pricing
mechanism
that
locks
in
rates
each
epoch.
Additionally,
Sui’s
consensus
mechanism,
Mysticeti,
finalizes
transactions
in
under
a
second,
offering
the
lowest
latency
in
Web3.

How
to
DeFi

New
DeFi
users
may
find
the
initial
steps
unfamiliar,
but
most
apps
have
similar
requirements.
The
first
step
is
to
connect
a
Sui
wallet,
typically
via
a ‘Connect
Wallet’
button
prominently
displayed
on
the
app’s
webpage.
Users
may
have
multiple
wallet
options
and
might
even
log
in
using
a
social
account
through
zkLogin.
After
selecting
the
wallet
and
account,
users
can
start
interacting
with
the
app.

Understanding
various
factors
is
essential,
such
as
slippage
and
gas
fees
during
swaps.
Slippage
refers
to
the
difference
between
the
expected
and
actual
price
of
a
swap,
while
gas
fees
are
the
costs
of
processing
transactions.
Borrowing
assets
often
requires
lending
first.
Navigating
DeFi
with
confidence
involves
doing
thorough
research
and
consulting
advisors.

Sui’s
DeFi
Landscape

Borrow
and
Lending
Protocols

Borrow
and
lending
protocols
enable
users
to
lend
digital
assets
in
exchange
for
borrowing
other
assets,
providing
an
accessible
alternative
to
traditional
financial
systems.
Driven
by
smart
contracts,
these
protocols
offer
a
fair
and
transparent
avenue
for
fundamental
financial
tools
accessible
worldwide.

Decentralized
Exchanges
(DEXes)

DEXes
allow
users
to
trade
assets
directly
with
one
another
securely
and
featurefully.
Leveraging
smart
contracts,
DEXes
facilitate
complex
peer-to-peer
transactions
autonomously.

Derivative
Exchanges

Derivative
exchanges
offer
a
way
to
trade
derivatives
like
options,
futures,
and
perpetual
contracts.
These
exchanges
enable
traders
to
hedge
against
risks
and
access
leverage,
among
other
tools
for
sophisticated
trading
strategies.

Yield
Aggregators

Yield
aggregators
help
users
optimize
returns
on
assets
by
automatically
redistributing
them
across
various
yield-generating
protocols.
These
tools
offer
a
simple
and
efficient
way
for
users
to
maximize
opportunities
in
Sui’s
DeFi
ecosystem.

NFT
Marketplaces

NFT
marketplaces
are
platforms
where
users
can
buy,
sell,
and
trade
NFTs.
These
marketplaces
provide
access
to
a
wide
range
of
digital
assets,
from
art
and
collectibles
to
NFTs
representing
real-world
assets
and
infrastructure.

Liquid
Staking

Liquid
staking
protocols
allow
users
to
obtain
an
asset
that
appreciates
in
proportion
to
SUI
staking
rewards
while
remaining
liquid
and
transferable.
These
platforms
are
foundational
to
an
efficient
DeFi
ecosystem.

Step
into
DeFi

Sui’s
DeFi
ecosystem
stands
out
by
offering
powerful,
user-friendly
experiences.
The
combination
of
low,
stable
gas
fees,
lightning-fast
transaction
speeds,
and
the
elimination
of
traditional
friction
points
makes
Sui
DeFi
particularly
accessible
for
newcomers.

Now
that
you’re
up
to
speed
on
how
to
DeFi
on
Sui,
it’s
your
time
to
explore
and
find
what
excites
you
the
most!

Note:
This
content
is
for
general
educational
and
informational
purposes
only
and
should
not
be
construed
or
relied
upon
as
an
endorsement
or
recommendation
to
buy,
sell,
or
hold
any
asset,
investment,
or
financial
product
and
does
not
constitute
financial,
legal,
or
tax
advice.

Image
source:
Shutterstock