Sui TVL Enters Top 10 Across All Chains: A Comprehensive Look at How Sui's Native Features Drive DeFi Growth
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Sui TVL Enters Top 10 Across All Chains: A Comprehensive Look at How Sui's Native Features Drive DeFi Growth
Sui's native capabilities enable application developers to create powerful products and user experiences.
Navigating Web3 tides with focused insightsAccording to data from DefiLlama, on January 28, Sui's TVL surpassed $402 million, securing a spot among the top ten blockchains by total value locked (TVL)!
Sui's innovative native features are paving the way for DeFi applications, delivering an exceptional user experience. Each native capability—ranging from enabling efficient shared liquidity to simplifying user interactions—plays a vital role in shaping DeFi on Sui.
Examining these native features individually highlights their significant impact on DeFi applications. When considered collectively, their unique ability to enhance user engagement and experience within the Sui DeFi ecosystem becomes even more evident.
DeepBook
DeepBook is a key component of DeFi on Sui—a protocol designed to enable efficient sharing of liquidity across multiple applications. As a Central Limit Order Book (CLOB), DeepBook systematically records buy and sell orders in chronological order, autonomously identifying matches between buyers and sellers to facilitate smooth trade execution. Leveraging Sui’s high performance, applications can use DeepBook to execute trades with low latency and high throughput. As a native protocol within the Sui ecosystem, DeepBook offers seamless access to substantial liquidity for DeFi apps through simple integration, effortlessly fulfilling both market and limit order demands.
DeepBook efficiently stores unmatched limit orders in a pool and removes them only upon successful matching. It enables permissionless creation of liquidity pools for any asset pair. As the first native liquidity layer on Sui, it fully leverages Sui’s powerful network layer and unique data model, streamlining the development of DeFi applications within the Sui ecosystem.
zkLogin
zkLogin addresses the onboarding challenges new users face when exploring blockchain applications. The lack of simplified login processes often creates barriers for first-time users, leading to significant drop-off rates. In contrast, zkLogin simplifies this process by allowing users to securely create accounts and conduct transactions using their existing Web2 credentials.
zkLogin gives developers flexibility—either providing invisible wallets that abstract away user interaction with the blockchain or offering simpler pathways for users to access their on-chain assets. It seamlessly integrates with existing account types like seed phrases and hardware wallets, catering to both beginners and experts based on user preference. This versatility enhances accessibility and user-friendliness of DeFi applications within the Sui ecosystem.
As a core part of Sui, zkLogin empowers app builders to deliver optimal user experiences for individuals who prefer Web2-style logins. By improving accessibility and usability, zkLogin fosters a more inclusive environment for users engaging with DeFi apps on Sui.
Sponsored Transactions
Sui tackles the challenge of blockchain gas fees through its introduction of sponsored transactions. Requiring new users to pay fees in the underlying blockchain’s native token introduces friction that may cause immediate abandonment, especially for those unfamiliar with blockchain applications.
Sponsored transactions eliminate this onboarding barrier by allowing applications to fund specific user transactions and abstract away gas fees from the end-user experience. On Sui, sponsored transactions offer fine-grained control over gas sponsorship, giving app developers unique incentives to boost user engagement and reduce friction for first-time users. While shifting gas cost responsibility from users to apps might seem like an unconventional business model, it provides builders with flexibility in determining the revenue model that best suits their needs.
Programmable Transaction Blocks
Programmable Transaction Blocks (PTBs) are a native Sui feature that unlocks unique possibilities for composability and greatly simplifies end-user interactions with the blockchain. Unlike traditional approaches requiring multiple transactions for simple operations, PTBs allow bundling, signing, and submitting a series of complex transactions in one unified process. Commands execute sequentially, enabling the result of one command to be used in subsequent ones, ensuring a coordinated and atomic process—should one command fail, the entire block fails.
PTBs significantly enhance the experience for both application developers and end users by simplifying and consolidating complex transactions. This capability enables the creation and execution of unique DeFi strategies involving multiple apps and interactions—all within a single transaction block. As a powerful tool, PTBs contribute to a seamless and user-friendly blockchain experience, offering a streamlined approach to interactions within Sui’s DeFi ecosystem.
Kiosk
Sui’s Kiosk native feature allows users to retain full control over their assets even while they are listed for sale. When selling items such as NFTs, users typically have to give up certain ownership-related permissions. For example, an NFT owner might want to maintain access to ownership-linked functionalities while their item is on sale. Kiosk not only facilitates the transfer of digital asset ownership but also enables creators to define specific policies for asset types, including custom trading mechanisms like auctions—providing a versatile solution for users seeking seamless interaction and trading of their assets.
Essentially, Kiosk is a simple yet highly customizable tool for building and participating in commerce applications on the blockchain. Similar to a physical kiosk owned by a single entity and designated for various goods, Kiosk streamlines the process of trading unique assets. Whether for individuals or large marketplaces, Kiosk offers an all-in-one solution, eliminating the need for additional layers or third-party services commonly required on traditional web platforms and other blockchains.
Enhancing the DeFi Experience
Delving into Sui’s application-native features reveals how DeFi applications on Sui deliver a powerful user experience. Apps can leverage DeepBook for instant access to deep liquidity and diverse trading capabilities. zkLogin and sponsored transactions remove major adoption barriers such as wallets and gas fees. PTBs provide strong composability while simplifying user interactions. Finally, Kiosk offers a distinctive approach to digital asset trading with robust functionality.
Sui’s development is driven by a vision to deliver the best possible experience for end users and developers alike. Central to achieving this vision is empowering application builders through Sui-native capabilities. Stay tuned for upcoming improvements and new native features rolling out throughout the year. It’s an exciting time to be building on Sui!
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