Lending and borrowing in the crypto space have changed how users interact with their digital assets. These financial activities have become crucial in decentralised finance by allowing individuals to earn interest on their holdings or access liquidity without selling their assets (DeFi). DeFi platforms eliminate intermediaries, reduce costs, and increase accessibility, making financial services available to a wider audience.

Suilend enhances the blockchain lending and borrowing experience by leveraging the Sui blockchain to offer secure, efficient, and user-friendly services. It supports a variety of assets and provides competitive interest rates, making it an attractive option for users. Suilend’s user-friendly interface and commitment to transparency and security ensure that users can confidently manage their crypto investments, enhancing the overall DeFi experience.

What is Suilend?

Suilend is a decentralized finance (DeFi) platform designed to facilitate the lending and borrowing of cryptocurrencies on the Sui blockchain. Its primary purpose is to provide users with a secure, efficient, and user-friendly environment to manage their crypto assets. This enables them to earn interest on their holdings or access liquidity without selling their assets.

Vision and Mission of Suilend

Developed by the team behind Solend, Suilend’s vision is democratizing access to financial services by leveraging blockchain technology. Its mission is to create a transparent, secure, and efficient platform that empowers users to maximize the potential of their crypto assets. By eliminating intermediaries and reducing costs, Suilend aims to make decentralized lending and borrowing accessible to a broader audience.

Key Features of Suilend

• User-Friendly Interface: Designed for beginners and intermediate users, Suilend offers an intuitive platform that simplifies lending and borrowing.
• Security: Utilizes the robust security features of the Sui blockchain to protect user assets.
• Variety of Supported Assets: Supports a wide range of cryptocurrencies, providing users with diverse options for lending and borrowing.
• Competitive Interest Rates: Offers attractive interest rates to maximize returns for lenders and minimize costs for borrowers.
• Transparency: Ensures all transactions and processes are transparent, fostering user trust.

Comparison with Solend

While both Suilend and Solend are DeFi platforms focused on lending and borrowing, there are key differences:

• Blockchain: Suilend operates on the Sui blockchain, while Solend is built on the Solana blockchain.
• User Interface: Suilend emphasizes a user-friendly interface tailored for beginners and intermediate users, whereas Solend targets a broader range of users.
• Asset Support: Both platforms support a variety of assets, but the specific cryptocurrencies available may differ.
• Interest Rates: Suilend offers competitive interest rates, which may vary from those on Solend depending on market conditions and platform policies.

How Suilend Works

Suilend provides a streamlined process for both lending and borrowing cryptocurrencies. Users can lend their assets to earn interest or borrow assets by providing collateral. The platform ensures transparency and security throughout the process, leveraging the Sui blockchain’s capabilities.

How to Lend on Suilend

1.Create a Sui Wallet Address: Set up a compatible Sui wallet if you don’t already have one
2.Connect Your Wallet: Connect your Sui wallet to the Suilend platform.

3.Deposit Assets: Purchase Sui tokens from Gate.io and transfer it to your Sui wallet.
4.Select Lending Options: Choose the assets you want to lend and input the amount you wish to lend.

5.Start Earning: Once your assets are lent out, you will start earning interest, which is periodically credited to your account.

How to Borrow on Suilend

1.Create a Sui Wallet Address: If you don’t already have one, set up a compatible Sui wallet.
2.Connect Your Wallet: Connect your Sui wallet to the Suilend platform.
3.Deposit Collateral: Transfer the required collateral to your Suilend account. The collateral amount depends on the asset you wish to borrow.
4.Select Borrowing Options: Choose the asset you want to borrow and input the amount you wish to borrow.

5.Receive Funds: Once approved, the borrowed assets will be transferred to your account. You can use these assets as needed while ensuring you maintain the required collateral.

How to Bridge Tokens on Suilend

1.Access the Bridge Feature: Navigate to the token bridging section on the Suilend platform.
2.Select Tokens: Choose the tokens you want to bridge and the destination blockchain.

3.Initiate the Bridge: Follow the prompts to initiate the bridging process. Ensure you have sufficient funds to cover any associated fees.
4.Complete the Transfer: Once the process is complete, your tokens will be available on the destination blockchain, ready for use.

Suilend Products

SpringSui

SpringSui is a Liquid Staking Token (LST) that offers significant improvements over existing LSTs, most notably instant unstaking. This feature allows for infinite liquidity when unstaking, enhancing safety by reducing the risk of depegging. In the future, other teams can deploy their own LSTs on the platform permissionlessly and at no cost using the SpringSui Standard.

How Does It Work?

When you stake your SUI, you receive a StakedSui object in return. An LST contract holds these StakedSui objects and issues LSTs to the user. This token represents your stake and can be freely traded or used within the Sui ecosystem.

One significant challenge with LSTs is maintaining their peg to the underlying asset’s value. Ideally, the price of an LST should be the value of the staked Sui objects in the contract. However, in times of thin liquidity or market irrationality, LSTs can sometimes deviate from their fundamental value.

To address this issue, Suilend proposed SIP-33. This SIP ensures you can always redeem your LST for the underlying Sui instantly, eliminating the risk of depegging. Prior to SIP-33, this was not possible. Since sSUI can always be redeemed into Sui, and Sui liquidity is orders of magnitude greater than any LST liquidity, the economic security of sSUI is much stronger than other LSTs that do not implement SIP-33.

How Are APRs Determined?

• Underlying Network Staking Rewards: The primary component of the APR for LSTs on Sui, such as sSUI from SpringSui, comes from the staking rewards generated by the Sui network. These rewards depend on factors like the total amount of SUI staked, the network’s inflation rate, and validator performance.
• Validator Performance: The performance of validators in the Sui network plays a crucial role in determining the APR for LSTs like sSUI. Validators that consistently validate transactions and secure the network without downtime or penalties generate higher rewards.
• Commission Fees: Validators on Sui charge a commission on the rewards they earn from staking. The APR for LST holders is impacted by the commission percentage that validators take. Lower commission rates lead to higher APRs for those staking through LSTs like sSUI.
• Protocol Fees: SpringSui may charge a fee for liquid staking services, which can also influence the APR for LST holders. This fee is typically deducted from the staking rewards before being distributed to sSUI holders, affecting their final yield.

Steamm

Steamm is a capital-efficient Automated Market Maker (AMM) that lends idle assets for additional yield. Steamm has been developing for the last few months and will launch in Q1 2025.

How Does It Work?

Steamm maximizes liquidity efficiency through its native money market integration and adaptability through its modular quotation design. By enabling various swap quotation models, including constant-product, stable, and dynamic-fee AMMs, Steamm supports diverse trading needs, offering robust flexibility and enhanced liquidity management.

A key innovation is Steamm’s liquidity re-utilization model. Unlike traditional AMMs where liquidity often sits idle, Steamm channels unused liquidity into lending markets via an abstraction called Bank, generating additional yield for liquidity providers. Through the use of bTokens, earned yield flows back into liquidity pools, creating extra value for LPs while preserving enough reserve liquidity for active trading. This modular, yield-enhancing design makes Steamm a powerful protocol for liquidity providers, offering market-making functionality and improved yield with lower opportunity costs.

Categories of Assets on Suilend

Main Assets

Main assets on Suilend undergo thorough due diligence before being listed. They are evaluated based on a variety of parameters to ensure they meet Suilend’s risk framework criteria. This process helps avoid listing risky and illiquid assets, minimizes security risks, and maintains overall protocol stability. By carefully selecting main assets, Suilend ensures a secure and reliable environment for users to lend and borrow.

Isolated Assets

Isolated assets are separated from other assets in terms of risk and exposure. When these assets are supplied or borrowed, the potential risk of liquidation is confined to one account rather than affecting others. On Suilend, an isolated asset must be the only asset borrowed in an account. For example, if you wish to borrow DEEP, it must be your account’s only asset. Isolated assets are typically newer or more volatile, and by isolating them, Suilend ensures that the risks associated with these assets, such as sudden price drops, do not impact the stability of the entire protocol or create “bad debt” for other users.

Tokenomics of $SEND

The $SEND token is the native utility token of the Suilend platform. It has a total supply of 100 million tokens, distributed as follows:

• Investors: 20%
• Team: 15%
• Community: 65%

This distribution ensures a balanced allocation that supports the platform’s growth, rewards the community, and incentivizes the development team and early investors.

Conclusion

Suilend is transforming the crypto lending and borrowing landscape with its secure, efficient, and user-friendly platform on the Sui blockchain. By offering innovative products like SpringSui and Steamm, competitive interest rates, and various supported assets, Suilend provides a comprehensive solution for managing crypto assets. Its focus on transparency, security, and accessibility makes it an attractive option for beginners and intermediate users, ensuring a reliable and rewarding DeFi experience. Explore Suilend today to experience the future of crypto lending and borrowing.