White Paper
IN ACCORDANCE WITH TITLE II OF REGULATION (EU) 2023/1114
Table of Contents
A. Information about the Person Seeking Admission to Trading
A.1 Name
A.2 Legal Form
A.3 Registered address
A.4 Head office
A.5 Registration Date
A.6 Legal entity identifier
A.7 Another identifier required pursuant to applicable national law
A.8 Contact telephone number
A.9 E-mail address
A.10 Response Time (Days)
A.11 Parent Company
A.12 Members of the Management body
A.13 Business Activity
A.14 Parent Company Business Activity
A.15 Newly Established
A.17 Financial condition since registration
B. Information about the issuer, if different from the offeror or person seeking admission to trading
B.1 Issuer Information
B.2 Name
B.3 Legal Form
B.4 Registered address
B.5 Head office
B.6 Registration Date
B.7 Legal entity identifier
B.8 Another identifier required pursuant to applicable national law
B.9 Parent Company
B.10 Members of the Management Body
B.11 Business Activity
B.12 Parent Company Business Activity
C. Information about the operator of the trading platform in cases where it draws up the crypto-asset white paper and information about other persons drawing the crypto-asset white paper pursuant to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114
C.1 Name
C.2 Legal Form
C.3 Registered address
C.4 Head office
C.5 Registration Date
C.6 Legal entity identifier of the operator of the trading platform
C.7 Another identifier required pursuant to applicable national law
C.8 Parent Company
C.9 Reason for Crypto-Asset White Paper Preparation
C.10 Members of the Management body
C.11 Operator Business Activity
C.12 Parent Company Business Activity
C.13 Other persons drawing up the crypto- asset white paper according to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114
C.14 Reason for drawing the white paper by persons referred to in Article 6(1), second subparagraph, of Regulation (EU) 2023/1114
D. Information about the Crypto-Asset Project
D.1 Crypto-asset project name
D.2 Crypto-assets name
D.3 Abbreviation
D.4 Crypto-asset project description
D.5 Details of all natural or legal persons involved in the implementation of the crypto-asset project
D.6 Utility Token Classification
D.7 Key Features of Goods/Services for Utility Token Projects
D.8 Plans for the token
D.9 Resource Allocation
D.10 Planned Use of Collected Funds or Crypto-Assets
E. Information about the Admission to Trading
E.1 Public Offering or Admission to trading
E.2 Reasons for Public Offer or Admission to trading
E.3 Fundraising Target
E.4 Minimum Subscription Goals
E.5 Maximum Subscription Goal
E.6 Oversubscription Acceptance
E.7 Oversubscription Allocation
E.8 Issue Price
E.9 Official currency or any other crypto- assets determining the issue price
E.10 Subscription fee
E.11 Offer Price Determination Method
E.12 Total Number of Offered/Traded Crypto- Assets
E.13 Targeted Holders
E.14 Holder restrictions
E.16 Refund Mechanism
E.17 Refund Timeline
E.18 Offer Phases
E.19 Early Purchase Discount
E.20 Time-limited offer
E.21 Subscription period beginning
E.22 Subscription period end
E.23 Safeguarding Arrangements for Offered Funds/Crypto-Assets
E.24 Payment Methods for Crypto-Asset Purchase
E.25 Value Transfer Methods for Reimbursement
E.26 Right of Withdrawal
E.27 Transfer of Purchased Crypto-Assets
E.28 Transfer Time Schedule
E.29 Purchaser's Technical Requirements
E.30 Crypto-asset service provider (CASP) name
E.31 CASP identifier
E.32 Placement form
E.33 Trading Platforms name
E.34 Trading Platforms Market Identifier Code (MIC)
E.35 Trading Platforms Access
E.36 Involved costs
E.37 Offer Expenses
E.38 Conflicts of Interest
E.39 Applicable law
E.40 Competent court
F. Information about the Crypto-Assets
F.1 Crypto-Asset Type
F.2 Crypto-Asset Functionality
F.3 Planned Application of Functionalities
F.4 Type of white paper
F.5 The type of submission
F.6 Crypto-Asset Characteristics
F.7 Commercial name or trading name
F.8 Website of the issuer
F.9 Starting date of offer to the public or admission to trading
F.10 Publication date
F.11 Any other services provided by the issuer
F.12 Language or languages of the white paper
F .13 Digital Token Identifier Code used to uniquely identify the crypto-asset or each of the several crypto assets to which the white paper relates, where available
F.14 Functionally Fungible Group Digital Token Identifier, where available
F.15 Voluntary data flag
F.16 Personal data flag
F.17 LEI eligibility
F.18 Home Member State
F.19 Host Member States
G. Information on the rights and obligations attached to the crypto-assets
G.1 Purchaser Rights and Obligations
G.2 Exercise of Rights and obligations
G.3 Conditions for modifications of rights and obligations
G.4 Future Public Offers
G.5 Issuer Retained Crypto-Assets
G.6 Utility Token Classification
G.7 Key Features of Goods/Services of Utility Tokens
G.8 Utility Tokens Redemption
G.9 Non-Trading request
G.10 Crypto-Assets purchase or sale modalities
G.11 Crypto-Assets Transfer Restrictions
G.12 Supply Adjustment Protocols
G.13 Supply Adjustment Mechanisms
G.14 Token Value Protection Schemes
G.15 Token Value Protection Schemes Description
G.16 Compensation Schemes
G.17 Compensation Schemes Description
G.18 Applicable law
G.19 Competent court
H. Information on the Underlying Technology
H.1 Distributed ledger technology
H.2 Protocols and technical standards
H.3 Technology Used
H.4 Consensus Mechanism
H.5 Incentive Mechanisms and Applicable Fees
H.6 Use of Distributed Ledger Technology
H.7 DLT Functionality Description
H.8 Audit
H.9 Audit outcome
I. Information on Risks
I.1 Offer-Related Risks
I.2 Issuer-Related Risks
I.3 Crypto-Assets-related Risks
I.4 Project Implementation-Related Risks
I.5 Technology-Related Risks
I.6 Mitigation measures
J. Information on the sustainability indicators in relation to adverse impact on the climate and other environment-related adverse impacts
S.1 Name
S.2 Relevant legal entity identifier
S.3 Name of the crypto-asset
S.4 Consensus Mechanism
S.5 Incentive Mechanisms and Applicable Fees
S.6 Beginning of the period to which the disclosure relates
S.7 End of the period to which the disclosure relates
S.8 Energy consumption
S.9 Energy consumption sources and methodologies
Regulatory Disclosures
01. Date of Notification: 2025-09-16
02. Statement in accordance with Article 6(3) of Regulation (EU) 2023/1114:
This crypto-asset white paper has not been approved by any competent authority in any Member State of the European Union. The person seeking admission to trading of the crypto-asset is solely responsible for the content of this crypto-asset white paper.
03. Compliance statement in accordance with Article 6(6) of Regulation (EU) 2023/1114
This crypto-asset white paper complies with Title II of Regulation (EU) 2023/1114 and, to the best of the knowledge of the management body of NAVI Protocol, the information presented in the crypto-asset white paper is fair, clear and not misleading and the crypto-asset white paper makes no omission likely to affect its import.
04. Statement in accordance with Article 6(5), points (a), (b), (c):
The crypto-asset referred to in this white paper may lose its value in part or in full, may not always be transferable and may not be liquid.
05. Statement in accordance with Article 6(5), point (d):
The utility token referred to in this white paper may not be exchangeable against the good or service promised in the crypto-asset white paper, especially in the case of a failure or discontinuation of the crypto-asset project.
06. Statement in accordance with Article 6(5), points (e) and (f):
The crypto-asset referred to in this white paper is not covered by the investor compensation schemes under Directive 97/9/EC of the European Parliament and of the Council. The crypto-asset referred to in this white paper is not covered by the deposit guarantee schemes under Directive 2014/49/EU of the European Parliament and of the Council.
Summary
07. Warning:
This summary should be read as an introduction to the crypto-asset white paper. The prospective holder should base any decision to purchase this crypto-asset on the content of the crypto-asset white paper as a whole and not on the summary alone. The offer to the public of this crypto-asset does not constitute an offer or solicitation to purchase financial instruments and any such offer or solicitation can be made only by means of a prospectus or other offer documents pursuant to the applicable national law. This crypto-asset white paper does not constitute a prospectus as referred to in Regulation (EU) 2017/1129 of the European Parliament and of the Council (36) or any other offer document pursuant to Union or national law.
08. Characteristics of the Crypto-Asset
NAVX is the utility and governance token for the NAVI Protocol. Purchasers of NAVX tokens have the right to participate in the protocol's governance by voting on proposals, such as changes to interest rates, the addition of new assets, or adjustments to collateral ratios. Holders can also provide liquidity for NAVX trading pairs and lock their tokens to receive benefits like boosted rewards, a share of protocol revenue, and enhanced voting power. These rights are exercised by participating in on-chain governance votes or by interacting with the protocol's liquidity features through a compatible wallet. According to the issuer, no modifications to these rights and obligations are anticipated or planned.
09. Utility Token Summary
The $NAVX token is the native utility and governance token for the NAVI Protocol, a decentralized liquidity platform offering crypto-asset lending and borrowing services with a total supply of 1,000,000,000 tokens. The token’s primary utilities include: (i) Governance, allowing holders to vote on protocol proposals such as adding new assets, setting interest rates, and adjusting collateral ratios; and (ii) Dynamic Liquidity Provision (dLP), where users who provide liquidity for NAVX pairs and lock the resulting LP tokens can receive benefits like boosted rewards, a share of protocol revenue, and enhanced voting power. No restrictions on the transferability of the token are specified in the provided information.
10. Key Information About the Admission to Trading
No public offer of NAVX tokens is being made, as the token is already in circulation. This document concerns the admission of the token to trading, and as such, there are no fundraising targets, issue prices, or subscription periods. The goal of the admission is to provide a seamless trading experience for the community. No crypto-asset service provider has been appointed to place the token. Admission to trading is being sought on several platforms, including Kraken, OKX, and Coinbase.
A. Information about the Person Seeking Admission to Trading
A.1 Name: NAVI PROTOCOL LABS INC.
A.2 Legal Form: 6TPA
A.3 Registered address: Financial Center, Balboa Avenue and Aquilino De La Guardia Street, Floor 51, Suite 5102, Panama City, Republic of Panama.
A.4 Head office: Campo Alegre Edificio Angeliki, Local 1A, Planta Baja Apdo. , Panama, 0832-00402, RE
A.5 Registration Date: 2023-07-20
A.6 Legal entity identifier: N/A
A.7 Another identifier required pursuant to applicable national law: 155740387
A.8 Contact telephone number: +1 213 265 2115
A.9 E-mail address: team@naviprotocol.io
A.10 Response Time (Days): 007
A.11 Parent Company: N/A
A.12 Members of the Management body:
Maybe Mendieta
Director
Financial Center, Balboa Avenue and Aquilino De La Guardia Street, Floor 51, Suite 5102
A.13 Business Activity: NAVI Protocol is the most trusted DeFi infrastructure on #Sui with the leading Lending + LSDeFi platforms. Co-led by OKX Ventures, Hashed, and Dao5. NAVI dominates the leading spot in both lending and liquid staking in the Sui network since its launch. Website Link: https://naviprotocol.io/
A.14 Parent Company Business Activity: N/A
A.15 Newly Established: false
A.17 Financial condition since registration:
Since its launch to the end of 2025 Q2, the total revenue has reached 28.61M, including borrowing fee 17.79M, interest income: 9.99M, and liquidation income 794K, flash loan income 25.85K. Business development and performance: - Revenue and expenses: fees from lending, DEX, and staking; costs include development, marketing, operations. - KPIs: TVL growth, trading volume, active users - Material changes: steady growth in TVL and trading volume - Extraordinary events: no major financial restructuring.
B. Information about the issuer, if different from the offeror or person seeking admission to trading
B.1 Issuer Information: false, the offeror and entity are the same, so this section is not applicable
B.2 Name: N/A
B.3 Legal Form: N/A
B.4 Registered address: N/A
B.5 Head office: N/A
B.6 Registration Date: N/A
B.7 Legal entity identifier: N/A
B.8 Another identifier required pursuant to applicable national law: N/A
B.9 Parent Company: N/A
B.10 Members of the Management Body: N/A
B.11 Business Activity: N/A
B.12 Parent Company Business Activity: N/A
C. Information about the operator of the trading platform in cases where it draws up the crypto-asset white paper and information about other persons drawing the crypto-asset white paper pursuant to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114
C.1 Name: N/A, This section is not applicable, as neither the operator of a trading platform nor any other person, apart from the issuer, has drawn up or contributed to the preparation of the crypto-asset white paper.
C.2 Legal Form: N/A
C.3 Registered address: N/A
C.4 Head office: N/A
C.5 Registration Date: N/A
C.6 Legal entity identifier of the operator of the trading platform: N/A
C.7 Another identifier required pursuant to applicable national law: N/A
C.8 Parent Company: N/A
C.9 Reason for Crypto-Asset White Paper Preparation: N/A
C.10 Members of the Management body: N/A
C.11 Operator Business Activity: N/A
C.12 Parent Company Business Activity: N/A
C.13 Other persons drawing up the crypto- asset white paper according to Article 6(1), second subparagraph, of Regulation (EU) 2023/1114: N/A
C.14 Reason for drawing the white paper by persons referred to in Article 6(1), second subparagraph, of Regulation (EU) 2023/1114: N/A
D. Information about the Crypto-Asset Project
D.1 Crypto-asset project name: NAVI Protocol
D.2 Crypto-assets name: NAVX
D.3 Abbreviation: NAVX
D.4 Crypto-asset project description: NAVI Protocol is the most trusted DeFi infrastructure on #Sui with the leading Lending + LSDeFi platforms. Co-led by OKX Ventures, Hashed, and Dao5. NAVI dominates the leading spot in both lending and liquid staking in the Sui network since its launch. Website Link: https://naviprotocol.io/
D.5 Details of all natural or legal persons involved in the implementation of the crypto-asset project:
Maybe Mendieta
Director
Financial Center, Balboa Avenue and Aquilino De La Guardia Street, Floor 51, Suite 5102
D.6 Utility Token Classification: true
D.7 Key Features of Goods/Services for Utility Token Projects:
Navi's offering includes a decentralized liquidity protocol. It allows users to lend and borrow cryptocurrency assets without intermediaries, using a shared liquidity pool system.
D.8 Plans for the token:
Navi has a governance system that allows NAVX token holders to vote on proposals and changes to the protocol. This includes setting interest rates, adding new assets to the protocol, and changing the collateralization ratio.
D.9 Resource Allocation:
The funding round was co-led by OKX Ventures, dao5, and Hashed, with participation from other notable investors including Mysten Labs, Comma3 Ventures, Mechanism Capital, GeekCartel Capital, Nomad Capital, Coin98 Ventures, Cetus Protocol, Maverick, Viabtc, Assembly Partners, Gate.io, Hailstone Labs, Benqi and LBank Labs.
D.10 Planned Use of Collected Funds or Crypto-Assets:
Team: 20% — Allocated for team members to align with long-term project success. Treasury: 10% — Reserved for daily operations and strategic initiatives. Liquidity Provision: 4% — To support market makers and secure liquidity. Public Sale (IDO): 1.2% — Allocated for the initial decentralized exchange offering. Marketing: 3% — Used for promotional and outreach activities. Ecosystem & Airdrop: 45.8% — Dedicated to incentivizing TVL growth, running campaigns and airdrops. Includes the initial early supporters incentive. Investors / Advisors: 16% — Allocated for investors and advisors.
E. Information about the Admission to Trading
E.1 Public Offering or Admission to trading: ATTR
E.2 Reasons for Public Offer or Admission to trading: We aim to provide a seamless trading experience for our community, enabling them to trade our token across multiple platforms.
E.3 Fundraising Target: N/A
E.4 Minimum Subscription Goals: N/A
E.5 Maximum Subscription Goal: N/A
E.6 Oversubscription Acceptance: N/A
E.7 Oversubscription Allocation: N/A
E.8 Issue Price: N/A
E.9 Official currency or any other crypto- assets determining the issue price: N/A
E.10 Subscription fee: N/A
E.11 Offer Price Determination Method: N/A
E.12 Total Number of Offered/Traded Crypto- Assets: 1000000000
E.13 Targeted Holders: ALL
E.14 Holder restrictions: No restrictions except applicable law
E.16 Refund Mechanism: N/A
E.17 Refund Timeline: N/A
E.18 Offer Phases: N/A
E.19 Early Purchase Discount: N/A
E.20 Time-limited offer: N/A
E.21 Subscription period beginning: N/A
E.22 Subscription period end: N/A
E.23 Safeguarding Arrangements for Offered Funds/Crypto-Assets: N/A
E.24 Payment Methods for Crypto-Asset Purchase: Payments may be made in supported cryptocurrencies (e.g., USDT, USDC, ETH) and, where applicable, via fiat currency through approved payment channels.
E.25 Value Transfer Methods for Reimbursement: N/A
E.26 Right of Withdrawal: N/A
E.27 Transfer of Purchased Crypto-Assets: Through vesting tools and custodian service provider
E.28 Transfer Time Schedule: 2024-07-07
E.29 Purchaser's Technical Requirements: Purchasers must have a compatible blockchain wallet that supports the token’s network.
E.30 Crypto-asset service provider (CASP) name: N/A
E.31 CASP identifier: N/A
E.32 Placement form: N/A
E.33 Trading Platforms name: Kraken, OKX, Coinbase
E.34 Trading Platforms Market Identifier Code (MIC): PGSL, N/A, FREX
E.35 Trading Platforms Access: Investors can access the platforms via their official websites or mobile applications after completing any required registration and KYC procedures.
E.36 Involved costs: Standard trading fees apply as set by the trading platform. Navi Protocol does not charge additional access fees.
E.37 Offer Expenses: N/A
E.38 Conflicts of Interest: No known conflicts of interest exist between the issuer, offeror, and trading platforms.
E.39 Applicable law: Republic of Panama
E.40 Competent court: For legal matters related to the offering, the competent court will be located in Panama, where our company is incorporated.
F. Information about the Crypto-Assets
F.1 Crypto-Asset Type: NAVX tokens are considered as crypto-assets other than EMTs and ARTs under Regulation (EU) 2023/1114. NAVX tokens are fungible utility tokens.
F.2 Crypto-Asset Functionality:
The $NAVX token has a wide range of use cases within NAVI Protocol. These use cases for $NAVX have been designed to promote growth and asset composability across the broader Sui DeFi ecosystem. They are part of the structured journey toward achieving decentralization, community governance, and vital protocol autonomy.
F.3 Planned Application of Functionalities:
The core functionalities of the NAVI Protocol are already fully operational within the Sui ecosystem. These include robust lending and borrowing services for a wide array of assets (such as SUI, USDT, USDC, WETH, and the native NAVX token), Flash Loans, Automatic Leverage Vaults, and initial Liquid Staked Token (LST) strategies. The NAVX token currently underpins the protocol's governance, enables Dynamic Liquidity (dLP) provision for boosted emissions and revenue sharing, and grants voting power to holders. Furthermore, the NAVI Pro platform, launched in 2024, already features a user-leveling system offering liquidation forecasting (V1) and reward auto-compounding (V2), while the Astros DEX Aggregator is live, facilitating decentralized trading and cross-chain swaps.
F.4 Type of white paper: OTHR
F.5 The type of submission: NEWT
F.6 Crypto-Asset Characteristics:
The $NAVX token is the native utility and governance token of the NAVI Protocol, operating on the Sui blockchain. It is classified as a "crypto-asset other than asset-referenced tokens or e-money tokens" under MiCAR. The token has a maximum total supply of 1,000,000,000 $NAVX. The primary characteristics and utilities of the $NAVX token are: 1. Governance: Token holders can participate in the governance of the NAVI Protocol by voting on proposals and updates. This includes decisions regarding the introduction of new assets, setting interest rates, and adjusting collateralization ratios for the money markets. 2. Dynamic Liquidity Provision (dLP): Users can provide liquidity to NAVX trading pairs on decentralized exchanges (DEXes) and lock the resulting LP tokens within the NAVI Protocol. This dLP mechanism grants several benefits: • Boosted Rewards: Earn additional $NAVX rewards on top of standard supply/borrow APY. • Revenue Sharing: A portion of the fees generated from borrowing activities on the platform is distributed to dLP holders. • Enhanced Voting Power: dLP holders have more leveraged voting power in governance compared to regular $NAVX token holders. • Reward Eligibility: Locking a specific percentage of a user's deposit value in dLP tokens is required to activate $NAVX emission rewards for their supplied and borrowed assets.
F.7 Commercial name or trading name: NAVI Protocol
F.8 Website of the issuer: https://naviprotocol.io/
F.9 Starting date of offer to the public or admission to trading: 2025-10-14 (tentative)
F.10 Publication date: 2025-10-14
F.11 Any other services provided by the issuer:
The issuer also provides a DEX aggregator and a Telegram bot as part of its ancillary services.
F.12 Language or languages of the white paper: English
F.13 Digital Token Identifier Code used to uniquely identify the crypto-asset or each of the several crypto assets to which the white paper relates, where available: N/A
F.14 Functionally Fungible Group Digital Token Identifier, where available: N/A
F.15 Voluntary data flag: false
F.16 Personal data flag: false
F.17 LEI eligibility: true
F.18 Home Member State: IE
F.19 Host Member States: AT, BE, BG, HR, CY, CZ, DK, EE, FI, FR, DE, EL, HU, IS, IT, LI, LV, LT, LU, MT, NL, NO, PL, PT, RO, SK, SI, ES, SE
G. Information on the rights and obligations attached to the crypto-assets
G.1 Purchaser Rights and Obligations: Navi has a governance system that allows NAVX token holders to vote on proposals and changes to the protocol. This includes setting interest rates, adding new assets to the protocol, and changing the collateralization ratio.
G.2 Exercise of Rights and obligations: Navi has a governance system that allows NAVX token holders to vote on proposals and changes to the protocol. This includes setting interest rates, adding new assets to the protocol, and changing the collateralization ratio.
G.3 Conditions for modifications of rights and obligations: No modifications to the rights and obligations of purchasers are anticipated or planned.
G.4 Future Public Offers: Not applicable.
G.5 Issuer Retained Crypto-Assets: 300,000,000 The issuer retains 30% of the total NAVX supply (1,000,000,000 NAVX), allocated as follows: 20% for the Team (200,000,000 NAVX) and 10% for the Treasury (100,000,000 NAVX)，subject to lock-up and governance rules as disclosed in the whitepaper.
G.6 Utility Token Classification: true
G.7 Key Features of Goods/Services of Utility Tokens: Navi's offering includes a decentralized liquidity protocol. It allows users to lend and borrow cryptocurrency assets without intermediaries, using a shared liquidity pool system.
G.8 Utility Tokens Redemption: The $NAVX token has a wide range of use cases within NAVI Protocol. These use cases for $NAVX have been designed to promote growth and asset composability across the broader Sui DeFi ecosystem. They are part of the structured journey toward achieving decentralization, community governance, and vital protocol autonomy.
G.9 Non-Trading request: true
G.10 Crypto-Assets purchase or sale modalities: N/A
G.11 Crypto-Assets Transfer Restrictions:
Not applicable.
G.12 Supply Adjustment Protocols: false
G.13 Supply Adjustment Mechanisms: N/A
G.14 Token Value Protection Schemes: false
G.15 Token Value Protection Schemes Description: N/A
G.16 Compensation Schemes: false
G.17 Compensation Schemes Description: N/A
G.18 Applicable law: Republic of Panama
G.19 Competent court: For legal matters related to the offering, the competent court will be located in Panama, where our company is incorporated.
H. Information on the Underlying Technology
H.1 Distributed ledger technology:
The NAVI Protocol is a native liquidity protocol built on the Sui blockchain, a decentralized Layer 1 distributed ledger technology (DLT). The protocol's smart contracts are developed using the Move programming language to leverage its security and simplicity features. The underlying Sui blockchain employs a Delegated Proof-of-Stake (DPoS) consensus mechanism and supports parallel transaction execution to enhance scalability and transaction speed. The native governance token, NAVX, is issued on the Sui chain.
H.2 Protocols and technical standards:
The NAVI Protocol is built on the Sui blockchain, a Layer 1 network that operates on a Delegated Proof-of-Stake (DPoS) consensus mechanism. The protocol's smart contracts are developed using the Move programming language, leveraging its security and object-centric model. The native governance token, $NAVX, is a native asset on the Sui chain. The protocol also provides a NAVI SDK for developers to integrate its functionalities into their applications and integrates with other Sui ecosystem components like DeepBook for liquidations and various oracles for price data.
H.3 Technology Used:
The NAVI protocol is a decentralized liquidity protocol built on the Sui blockchain, utilizing the Move programming language and its corresponding Virtual Machine (VM). The protocol's core functions, such as lending, borrowing, and liquidations, are managed through a system of smart contracts, including a primary `LendingPool` contract. Key technological features include Flash Loans, Automatic Leverage Vaults, and an Isolation Mode designed for the secure listing of new assets. To ensure accurate asset pricing, the protocol relies on multiple oracle partners. Liquidations are managed through integrations with DeepBook and other Automated Market Makers (AMMs). For developers seeking to build on the ecosystem, NAVI provides a Software Development Kit (SDK) to facilitate the creation of integrated applications and automated bots. Users can interact with the protocol and manage their assets using any SUI-compatible wallet.
H.4 Consensus Mechanism:
The NAVI Protocol is built on the Sui blockchain and relies on its native consensus mechanism for security and transaction validation. Sui utilizes a Delegated Proof-of-Stake (DPoS) consensus mechanism. In this system, SUI token holders delegate their stake to a fixed set of validators responsible for processing transactions. These validators secure the network and, in return, receive staking rewards, which are then distributed to the SUI holders who delegated their stake.
H.5 Incentive Mechanisms and Applicable Fees:
The Navi Protocol's economic model utilizes several incentive mechanisms and fees to ensure its stability and reward participants. To maintain the health of the lending pools, liquidators are incentivized to act when a borrower's position becomes under-collateralized. These liquidators can repay a portion of the debt and receive the borrower's collateral at a discounted price, known as a 'liquidation bonus'. The protocol, in turn, collects a platform fee equivalent to 10% of these liquidation incentives. For users, the primary incentives are derived from supplying and borrowing activities. Liquidity providers earn passive income from the interest paid by borrowers. Furthermore, users can enhance their returns through the Dynamic Liquidity Provision (dLP) mechanism. By providing liquidity to NAVX token pairs on external DEXes and locking the LP tokens, users can receive boosted $NAVX emission rewards on their activities and a share of the protocol's borrowing fee revenue. A portion of the interest paid on all loans is allocated to the protocol's treasury, as defined by each asset's 'Reserve Factor'. Specific services have their own fee structures. Flash Loans incur a fee of 0.06% of the borrowed amount, which is directed to the protocol treasury. The NAVI AI Trading Bot applies a 1% transaction fee on all trades and features a referral program that offers rewards and fee discounts.
H.6 Use of Distributed Ledger Technology: falseH.7 DLT Functionality Description: N/AH.8 Audit: trueH.9 Audit outcome:
The Navi Token audit (OtterSec, Jan 2024) found no critical issues, only one best-practice suggestion (hardcoded TreasuryCap recipient), which was fixed. The Navi Oracle audit (Veridise, Jun 2024) identified 13 issues (1 high, 2 medium, others low/warnings), with some fixed and others only acknowledged, highlighting risks around stale prices, centralization, and missing validations. Audit links
I. Information on Risks
I.1 Offer-Related Risks:
An investment in NAVX tokens involves a high degree of risk and is suitable only for sophisticated investors who are capable of understanding and evaluating the risks involved. Prospective purchasers should carefully consider the risks described below before purchasing NAVX tokens. The occurrence of any of these risks could have a material adverse effect on the NAVI Protocol, the value of the NAVX tokens, and a purchaser's ability to trade or use them.
Market and Price Volatility Risks
The market for crypto-assets is new, rapidly evolving, and subject to extreme price volatility and unpredictable fluctuations. The value of NAVX is not static and may be subject to significant downward pressure due to a variety of factors, including, but not limited to:
Market Sentiment: Negative publicity, changes in investor confidence, and broader market trends in the crypto-asset space can severely impact the token's price.
Trading Volume and Liquidity: The value of NAVX is dependent on the existence of liquid secondary markets on decentralized (DEX) and/or centralized (CEX) exchanges. A lack of active buyers and sellers may result in low trading volume, leading to high price volatility, increased slippage on trades, and difficulty in liquidating NAVX holdings at a desired price.
Initial Decentralized Exchange Offering (IDO): The price of NAVX tokens during the Public Sale (IDO) may not be indicative of its market price following the offering. The token's price could decline significantly after it becomes available on public trading platforms.
Risks Associated with the NAVI Protocol
The utility and value of the NAVX token are intrinsically linked to the performance, adoption, and security of the NAVI Protocol. Any adverse developments affecting the protocol will directly impact the NAVX token.
Dependence on Protocol Success: The NAVX token's primary utility is within the NAVI ecosystem, particularly for governance and liquidity provision incentives. If the NAVI Protocol fails to attract and retain a substantial user base, or if its Total Value Locked (TVL) declines, the demand for and value of NAVX could diminish significantly.
Smart Contract Risk: As explicitly stated in the project's FAQ, the NAVI Protocol operates on smart contracts that are susceptible to unforeseen bugs, vulnerabilities, or exploits. Despite having undergone multiple audits by firms such as OtterSec, Movebit, and Salus, there is no guarantee that the code is free from flaws. A successful exploit could result in the loss of user funds and irreparable damage to the protocol's reputation and the token's value.
Oracle Risk: The protocol relies on decentralized oracles to obtain accurate price feeds for assets, which is critical for calculating collateral value and triggering liquidations. Manipulation of or failures in these oracle systems could lead to incorrect pricing, unwarranted liquidations, or the accumulation of bad debt within the protocol, thereby threatening its solvency and the value of NAVX.
Liquidation Mechanism Risks: The protocol's stability depends on an efficient liquidation process to manage undercollateralized loans. In times of extreme market volatility and network congestion, liquidations may not occur in a timely manner. This could lead to bad debt accruing to the protocol, potentially undermining its financial health and causing a loss of confidence among users and token holders.
Governance Risks: NAVX token holders participate in protocol governance. While this provides a decentralized decision-making process, it also introduces risks. Contentious proposals, low voter turnout, or malicious actors influencing votes could lead to decisions that are detrimental to the long-term health and security of the protocol.
Risks Associated with the Underlying Infrastructure
Sui Blockchain Risk: The NAVI Protocol is built on the Sui blockchain. Its performance, security, and stability are entirely dependent on the Sui network. Any attacks, outages, or technical failures of the Sui blockchain, such as a 51% attack, could render the NAVI Protocol inoperable and cause a total loss of value for NAVX tokens. The Sui network operates on a Delegated Proof-of-Stake (DPoS) model with a relatively small set of validators, which may present a higher degree of centralization risk compared to other blockchains.
Execution and Operational Risks
Competition: The DeFi lending and borrowing sector is highly competitive. NAVI Protocol faces competition from existing and future protocols on Sui and other blockchains. Failure to innovate, adapt, and maintain a competitive edge could lead to a loss of market share, negatively affecting the protocol's growth and the NAVX token's value.
Roadmap Uncertainty: The team has outlined an ambitious roadmap for 2025, including multi-chain expansion and new ecosystem products. There is a risk that the team may not be able to deliver on these plans due to technical challenges, funding issues, or shifting priorities. Failure to achieve key roadmap milestones could lead to a loss of community and investor confidence.
Legal and Regulatory Risks
The legal and regulatory landscape for crypto-assets, decentralized finance, and token offerings is uncertain and constantly evolving across various jurisdictions. Future legislative or regulatory actions could severely restrict the operations of the NAVI Protocol, the utility of the NAVX token, or the ability for NAVX to be traded on exchanges. Such developments could impose significant compliance costs or even render the project's business model untenable, leading to a significant decline in the token's value.
I.2 Issuer-Related Risks: N/AI.3 Crypto-Assets-related Risks:
Participation in the NAVI Protocol and the holding of its associated crypto-assets, including the native NAVX token, involve substantial risk. Users should carefully consider their financial situation and risk tolerance before engaging with the protocol. The value of crypto-assets is highly volatile and can be influenced by a multitude of factors. Potential users must understand that they could lose all or a substantial portion of their deposited funds. The following is a non-exhaustive list of the key risks associated with the NAVI Protocol and its crypto-assets.
Protocol-Specific Risks
Smart Contract Risk: The NAVI Protocol operates based on complex, self-executing smart contracts deployed on the Sui blockchain. While these contracts have undergone multiple security audits by reputable firms such as OtterSec, Movebit, and Salus, and are subject to an ongoing Bug Bounty Program, there is an inherent risk of unforeseen bugs, vulnerabilities, or flaws in the code. A malicious actor could exploit such a vulnerability to drain funds from the protocol's liquidity pools, deny access to user funds, or otherwise disrupt protocol operations, leading to a partial or total loss of user assets.
Liquidation Risk: This is a primary risk for users who borrow assets on the protocol. A user's position is quantified by a 'Health Factor,' which represents the safety of their supplied collateral against their borrowed debt. If the value of a user's collateral decreases or the value of their borrowed assets increases, their Health Factor will decline. If the Health Factor drops below 1, the position is deemed undercollateralized and becomes eligible for liquidation. During a liquidation event, a portion of the borrower's collateral (up to 35%) is forcibly sold at a discount to a third-party liquidator to repay the debt. This process incurs a liquidation penalty (or bonus for the liquidator), resulting in a net loss for the borrower beyond the normal market depreciation of their assets.
Oracle Risk: The protocol relies on external price feeds, known as oracles, to determine the value of supplied and borrowed assets for calculating collateral ratios and triggering liquidations. The NAVI Protocol may use a combination of oracles to ensure price accuracy. However, these oracles are a potential point of failure. They could be subject to manipulation, technical failure, or network congestion, leading to the broadcast of inaccurate price data. Inaccurate pricing could cause premature or unfair liquidations, or fail to trigger necessary liquidations, which could lead to the accumulation of bad debt within the protocol.
Risk of Bad Debt: The protocol is designed to remain overcollateralized at all times. However, in scenarios of extreme market volatility, the value of collateral could drop so rapidly that the liquidation process is insufficient to cover the outstanding debt. This is particularly relevant for assets with thin liquidity, where large liquidations could cause significant price slippage. Such events could result in bad debt, where the protocol's liabilities exceed its assets, potentially leading to losses for liquidity providers.
Asset-Specific and Market Risks
Asset Volatility and Liquidity Risk: The NAVI Protocol supports a wide range of assets, from 'Blue Chip' crypto-assets to more volatile 'long-tail and exotic assets'. All crypto-assets are subject to extreme price volatility. A sudden and significant drop in the price of an asset used as collateral can rapidly decrease a user's Health Factor and lead to liquidation. Furthermore, long-tail assets often have lower trading volumes ('thin liquidity'). In a liquidation scenario, selling a large amount of a thinly traded asset could be difficult, potentially leading to bad debt as described above. To mitigate this, NAVI employs granular risk management tools like Supply Limits and Debt Ceilings, but the underlying risk remains.
NAVX Token Risk: The native NAVX token serves as a governance and utility token within the ecosystem. Its value is subject to market fluctuations and is not guaranteed. The utility of the token in governance (voting power) and liquidity provision (dLP mechanism) is tied to its market value and can be impacted by price volatility. Furthermore, the token has a defined emission and vesting schedule for team members, investors, and other stakeholders, which could introduce selling pressure on the market at various points in time.
External and Systemic Risks
Underlying Blockchain Risk: The NAVI Protocol is built on the Sui blockchain. As such, it is susceptible to any risks inherent to the Sui network itself. These risks include, but are not limited to, consensus mechanism failures, network outages, undiscovered vulnerabilities in the Move programming language, or successful 51% attacks. The Sui network utilizes a Delegated Proof-of-Stake (DPoS) consensus mechanism with a relatively small set of 100 validators, which presents a higher degree of centralization compared to other blockchains and could increase its vulnerability to collusion or attack.
Regulatory and Legal Risk: The legal and regulatory landscape for decentralized finance (DeFi) and crypto-assets is constantly evolving and varies significantly by jurisdiction. Future laws, regulations, or legal actions could impose restrictions on the operation of the NAVI Protocol, its users, or the types of assets it supports, potentially impacting its functionality and the value of its associated assets.
I.4 Project Implementation-Related Risks:
The implementation of the NAVI Protocol project and the achievement of the objectives outlined in its roadmap are subject to a range of risks. These risks, if they materialize, could lead to delays in development, failure to deliver planned features, or an inability to achieve strategic goals, which may adversely affect the utility and value of the NAVX token. Prospective purchasers should carefully consider the following project implementation-related risks:
1. Risks Associated with Roadmap Execution and Delays
The project's success is contingent upon the timely and effective execution of its 2025 roadmap. This roadmap includes ambitious milestones such as open-sourcing the SDK, multi-chain expansion, platform rebranding, infrastructure enhancements, and the launch of new ecosystem products.
Developmental Complexity: Features outlined, such as 'AI-driven trading tools' and 'fully autopilot advanced lending strategies,' involve significant technical complexity. There is a risk that these features may be more difficult or take longer to develop than anticipated, or they may not function as intended upon release.
Timeline Slippage: Any of the planned quarterly deliverables could face delays due to unforeseen technical challenges, resource constraints, or shifts in strategic priorities. Significant delays could erode community confidence and provide a competitive advantage to rival protocols.
Failure to Deliver: There is no guarantee that all features and expansions described in the roadmap will be successfully implemented. A failure to deliver on key promises could negatively impact user adoption and the overall viability of the ecosystem.
2. Technological and Third-Party Dependency Risks
NAVI Protocol's functionality is intrinsically linked to the underlying Sui blockchain and a network of external partners and protocols.
Underlying Blockchain Risk: The protocol is built entirely on the Sui blockchain. Any performance issues, security vulnerabilities, network outages, or fundamental changes to the Sui network could directly and adversely affect NAVI Protocol's operations. Furthermore, the Sui blockchain utilizes a Delegated Proof-of-Stake (DPoS) consensus mechanism with a limited set of 100 validators. While this design enhances transaction speed, it introduces a higher degree of centralization compared to other blockchains, potentially increasing vulnerability to collusion or 51% attacks, which could compromise the integrity of the entire ecosystem.
Programming Language Risk: The protocol's smart contracts are written in Move, a language developed by Meta. While designed for security, Move has a smaller pool of experienced developers and security auditors compared to more established languages like Solidity. This could increase the risk of undiscovered vulnerabilities or create challenges in sourcing development talent.
Third-Party Integrations: The protocol relies on integrations with various third-party services, including multiple DEXs (Cetus, Turbos, Bluefin, Aftermath) for its DEX Aggregator, DeepBook for liquidations, and multiple oracle providers for price feeds. Any failure, exploit, or operational disruption of these external services is beyond the NAVI team's control and could severely impact the protocol's functionality, security, and solvency.
3. Team and Governance Risks
The project is currently dependent on its core team, and its future decentralization carries its own implementation risks.
Key Personnel Risk: The NAVI Protocol team is described as a 'seasoned team of founders and builders'. The project's continued development and strategic direction are highly dependent on this core team. The departure of key members could disrupt operations and delay the execution of the roadmap.
Transition to Decentralized Governance: The roadmap outlines a transition towards greater community governance through mechanisms like 'Vetoken'. This transition is complex and poses several risks. The implementation could face technical hurdles, community engagement might be lower than expected, or the governance process could prove inefficient, leading to slow decision-making or contentious proposals that hinder the protocol's progress.
4. Market Adoption and Competition Risks
The success of NAVI Protocol is not guaranteed and depends heavily on its ability to attract and retain a substantial user base in a highly competitive environment.
Competition: The DeFi lending and borrowing space is intensely competitive, with numerous established and emerging protocols on Sui and other blockchains. NAVI Protocol may fail to differentiate itself sufficiently or may be out-competed by projects with greater resources, brand recognition, or technological innovations.
Failure of Growth Initiatives: The project's growth strategy relies on marketing campaigns, user incentives, hackathons, and bounty programs. There is no assurance that these initiatives will be successful in attracting the required volume of liquidity providers, borrowers, and developers to create a sustainable and thriving ecosystem. A failure to achieve a critical mass of users and Total Value Locked (TVL) could threaten the long-term viability of the protocol.
5. Inherent Security Risks in Implementation
Despite rigorous security measures, the implementation of a complex DeFi protocol is subject to inherent security risks.
Smart Contract Vulnerabilities: The protocol has undergone multiple security audits. However, no audit can provide a complete guarantee against all potential vulnerabilities. Undiscovered bugs, logic errors, or exploits in the smart contract code could lead to a loss of user funds. As the protocol evolves and new features are added according to the roadmap, new code will be deployed, introducing new potential attack vectors.
Oracle Manipulation Risk: The protocol's reliance on oracles for asset pricing creates a risk of manipulation. A sophisticated attacker could potentially manipulate the price feeds from oracles, leading to unfair liquidations or the draining of funds from the protocol's pools.
As stated in the project's own documentation, NAVI Protocol should be treated as a Beta product, and participation involves significant risk. Users and potential token holders should not invest or risk more than they are willing to lose.
I.5 Technology-Related Risks:
Participation in the NAVI Protocol ecosystem entails exposure to a range of significant technology-related risks inherent in decentralized finance (DeFi) applications and the underlying blockchain infrastructure. While the NAVI Protocol team has implemented numerous security measures, including multiple smart contract audits, a bug bounty program, and granular risk management parameters, these risks cannot be entirely eliminated. Users should be fully aware of the following potential technological risks before interacting with the protocol.
1. Smart Contract Vulnerabilities
The core logic of the NAVI Protocol is executed by smart contracts deployed on the SUI blockchain. Despite undergoing extensive audits by reputable firms such as OtterSec, Movebit, and Salus, there remains a risk of unforeseen bugs, design flaws, or vulnerabilities within the codebase. A malicious actor could potentially exploit such a vulnerability to drain funds from the liquidity pools, manipulate internal accounting, or cause the protocol to cease functioning correctly. A successful exploit could result in the partial or total loss of user funds deposited in the protocol.
2. Underlying Blockchain Risks (SUI Blockchain)
NAVI Protocol operates on the SUI blockchain and is therefore inherently exposed to the risks of its underlying infrastructure.
Consensus Mechanism and Centralization: SUI utilizes a Delegated Proof-of-Stake (DPoS) consensus mechanism with a limited set of 100 validators. This relatively low number of validators introduces a degree of centralization, making the network potentially more susceptible to collusion or 51% attacks compared to more decentralized networks. Such an attack could lead to transaction censorship, block reorganization, or network halts, directly impacting the reliability and security of the NAVI Protocol.
Network Maturity and Stability: The SUI mainnet was launched in May 2023, making it a relatively young blockchain. As such, its core protocol may contain undiscovered vulnerabilities, and its long-term performance under extreme network congestion or adverse conditions is not as battle-tested as more established blockchains. A critical failure of the SUI network could render the NAVI Protocol inoperable and place user funds at risk.
Programming Language Risks: The protocol is developed using the Move programming language. While designed with a focus on security and asset safety, no programming language or its associated compiler and virtual machine is immune to undiscovered flaws. A critical vulnerability in the Move language or its implementation on SUI could have widespread consequences for all applications in the ecosystem, including NAVI.
3. Oracle and Data Feed Risks
The protocol's operations, particularly lending, borrowing, and liquidations, are critically dependent on accurate and timely price data for supported assets, which is supplied by external oracles. There is a significant risk of oracle manipulation, where an attacker could compromise or influence the price feeds. Inaccurate price data could lead to unfair liquidations of solvent positions or allow attackers to borrow assets against artificially inflated collateral, creating bad debt within the protocol and causing losses for liquidity providers. While NAVI mitigates this by using multiple oracle providers, a coordinated attack or a systemic failure across several data sources remains a possibility.
4. Liquidation Mechanism Risks
The solvency of the NAVI Protocol relies on a robust and efficient liquidation mechanism to close under-collateralized positions. This automated process is subject to several risks:
Market Volatility and Network Congestion: During periods of extreme price volatility ("black swan" events), rapid price drops combined with high network congestion on the SUI blockchain could prevent liquidations from being executed in a timely manner. This could cause the protocol to accumulate significant bad debt.
Liquidator Incentive Failure: The process depends on third-party liquidators who are incentivized by a liquidation bonus. If gas fees on the SUI network become prohibitively high or if the available liquidity on integrated DEXs (like DeepBook) is insufficient, liquidators may be unable or unwilling to participate. This lack of liquidation activity would leave the protocol exposed to under-collateralized debt.
5. Ecosystem and External Dependencies
NAVI Protocol integrates with and depends on various other components and platforms, each introducing its own set of risks:
Bridged Assets: The protocol supports assets bridged from other blockchains (e.g., Wormhole USDC and WETH). The security of these assets is contingent on the security of the respective cross-chain bridge. An exploit of a bridge could cause the bridged asset to de-peg and lose its value, which would severely impact the NAVI liquidity pools holding that asset.
DEX Aggregator Dependencies: The Astros DEX Aggregator, part of the NAVI ecosystem, relies on external DEXs for trade execution. A vulnerability, liquidity issue, or failure at one of these third-party DEXs could negatively affect users of the aggregator.
NAVI AI Trading Bot: This Telegram-based bot introduces significant custodial and platform risks. By automatically creating and hosting wallets for users, it creates a potential single point of failure. Users are exposed to risks of flaws in the bot's code, vulnerabilities in the Telegram platform, and a heightened risk of scams and social engineering attacks.
Given these risks, NAVI Protocol should be considered a high-risk platform. Users must conduct their own due diligence and should not supply or borrow funds that they are not prepared to lose.
I.6 Mitigation measures:
NAVI Protocol is built upon the Sui blockchain, leveraging the inherent security features of the Move programming language. The protocol has implemented a multi-faceted and robust framework to mitigate the technological risks associated with its DeFi lending and borrowing platform. These measures are designed to protect user funds, ensure protocol solvency, and maintain operational integrity.
1. Smart Contract and Code Security
To address the risk of vulnerabilities and unforeseen bugs within the smart contracts, NAVI Protocol adheres to a stringent security regimen:
Comprehensive Auditing: The protocol's codebase has undergone multiple, extensive audits by reputable third-party security firms, including OtterSec, Movebit, Salus, and Verdise. These audits cover various aspects of the protocol, from the core lending contracts to tokenomics and penetration testing, with reports publicly available for transparency.
Continuous Bug Bounty Program: NAVI maintains an active Bug Bounty Program to incentivize the responsible disclosure of vulnerabilities by security researchers and developers. Rewards are tiered based on the severity of the finding, with up to 2,000,000 NAVX offered for critical vulnerabilities that could lead to the extraction of Total Value Locked (TVL).
Secure by Design with Move: The protocol is developed using the Move programming language, which is designed with a focus on resource safety and access control, inherently preventing entire classes of bugs common in other smart contract languages. The Sui blockchain's use of the Move Prover further allows developers to formally verify that code executes as intended, adding a critical layer of pre-deployment security.
2. Oracle and Data Integrity
To mitigate the risk of price manipulation through oracle attacks, which could lead to improper liquidations and protocol insolvency, NAVI has implemented a resilient oracle security model:
Multi-Oracle Architecture: The platform does not rely on a single price feed. Instead, it aggregates quotes from multiple oracle partners to establish a reliable and accurate price for each asset. This redundancy ensures that the failure or compromise of a single oracle does not jeopardize the protocol.
Diverse Oracle Mechanisms: NAVI leverages a combination of oracle solutions, including Time-Weighted Average Price (TWAP) oracles where appropriate. This approach minimizes susceptibility to short-term price manipulation attacks, such as those executed via flash loans.
3. Market and Liquidity Risk Management
The protocol incorporates granular risk parameters to manage the volatility and liquidity risks associated with the diverse range of assets it supports, especially long-tail and exotic assets:
Supply Limits: Each asset has a configurable supply cap, limiting the total amount that can be deposited into the protocol. This prevents over-exposure to a single, potentially volatile asset and protects the protocol from the risks associated with thinly traded tokens whose value could be easily manipulated.
Debt Ceilings: This parameter restricts the total amount of debt that can be borrowed against a specific type of collateral. Debt ceilings provide a precise tool to limit the systemic risk posed by a single collateral asset, preventing it from being used to open excessively large debt positions.
Isolation Mode: For newer or higher-risk assets, NAVI employs an "Isolation Market." Assets listed in this mode have a specific debt ceiling, and users can only borrow a pre-approved set of stablecoins against them. This effectively quarantines the risk associated with these assets, preventing any potential contagion from affecting the solvency of the main lending pools.
4. Liquidation Mechanism Robustness
A timely and efficient liquidation process is critical to the health of any lending protocol. NAVI has engineered its liquidation mechanics to be reliable and robust:
Economic Incentives: The protocol offers a liquidation bonus—a discount on the collateral being purchased—to incentivize a decentralized network of third-party liquidators to monitor the protocol and promptly liquidate undercollateralized positions. This permissionless system creates a competitive and efficient market for liquidation.
Deep Liquidity Integration: To ensure that liquidations can be executed smoothly without significant price slippage, NAVI is tightly integrated with external liquidity sources on Sui, such as the DeepBook centralized limit order book. This provides a reliable venue for selling collateral in a timely manner.
Proactive User Risk Management Tools: To help users avoid liquidation, NAVI provides several tools:
Health Factor Notifications: Through an integration with Notifi, users can set up alerts via Email, Telegram, or Discord to be warned when their health factor drops, allowing them to take corrective action.
Liquidation Forecast: The NAVI Pro dashboard includes a feature that visually displays a user's current liquidation price, helping them better understand and manage their position's risk.
J. Information on the sustainability indicators in relation to adverse impact on the climate and other environment-related adverse impacts
S.1 Name: NAVI PROTOCOL LABS INC.
S.2 Relevant legal entity identifier: N/A
S.3 Name of the crypto-asset: NAVX
S.4 Consensus Mechanism: The NAVI Protocol is built on the Sui blockchain and relies on its native consensus mechanism for security and transaction validation. Sui utilizes a Delegated Proof-of-Stake (DPoS) consensus mechanism. In this system, SUI token holders delegate their stake to a fixed set of validators responsible for processing transactions. These validators secure the network and, in return, receive staking rewards, which are then distributed to the SUI holders who delegated their stake.
S.5 Incentive Mechanisms and Applicable Fees: The Navi Protocol's economic model utilizes several incentive mechanisms and fees to ensure its stability and reward participants. To maintain the health of the lending pools, liquidators are incentivized to act when a borrower's position becomes under-collateralized. These liquidators can repay a portion of the debt and receive the borrower's collateral at a discounted price, known as a 'liquidation bonus'. The protocol, in turn, collects a platform fee equivalent to 10% of these liquidation incentives. For users, the primary incentives are derived from supplying and borrowing activities. Liquidity providers earn passive income from the interest paid by borrowers. Furthermore, users can enhance their returns through the Dynamic Liquidity Provision (dLP) mechanism. By providing liquidity to NAVX token pairs on external DEXes and locking the LP tokens, users can receive boosted $NAVX emission rewards on their activities and a share of the protocol's borrowing fee revenue. A portion of the interest paid on all loans is allocated to the protocol's treasury, as defined by each asset's 'Reserve Factor'. Specific services have their own fee structures. Flash Loans incur a fee of 0.06% of the borrowed amount, which is directed to the protocol treasury. The NAVI AI Trading Bot applies a 1% transaction fee on all trades and features a referral program that offers rewards and fee discounts.
S.6 Beginning of the period to which the disclosure relates: 2024-01-01
S.7 End of the period to which the disclosure relates: 2024-12-31
S.8 Energy consumption: ~46,000 – 77,000 kWh
S.9 Energy consumption sources and methodologies:
Sources: Active validator nodes maintaining the NAVI network Methodology: Average power per validator node × number of active validators × 24 hours × 365 days Reference: Validator specifications, industry server benchmarks, DPoS node energy estimation
Last updated