The Sui platform offers unique opportunities for DeFi users, including low gas fees, high transaction speeds, and elements that make interacting with DeFi smoother and more convenient.
What is DeFi on Sui?
The Sui platform provides powerful tools for building DeFi applications, eliminating many issues faced by other ecosystems, such as the need for transaction approvals. Using Sui's object-oriented architecture, DeFi activities become smoother and more user-friendly. Gas fees on Sui are not only low but also stable, thanks to the pricing mechanism that locks in rates each epoch. The Mysticeti consensus mechanism finalizes transactions in under a second, making Sui one of the fastest platforms in the Web3 space.
How to Start with DeFi on Sui?
For new users, the first steps into DeFi might seem unfamiliar. However, most DeFi apps have similar procedures. The first step is connecting your Sui wallet. Usually, there is a 'Connect Wallet' button at the center or upper right corner of the webpage. After selecting the wallet app and specific account, you’re ready to start interacting with the app. It's important to consider factors such as slippage and gas fees. Slippage is the difference between the expected and actual price of your swap, while gas fees are the costs of processing your transaction.
Key DeFi Protocols and Applications on Sui
Lending and borrowing protocols allow users to lend digital assets in exchange for borrowing other assets. Decentralized exchanges (DEXes) enable direct trading between users using smart contracts. Here is a list of popular DeFi protocols and applications on Sui: Decentralized Exchanges: * 7k * Aftermath * Cetus * FlowX Lending Protocols: * Bucket * Navi * Scallop * SuiLend Derivative Exchanges: * BlueFin * Typus * Sudo Liquid Staking Protocols: * Aftermath (afSUI) * Haedal (haSUI) * Volo (vSUI) Each of these protocols and applications offers unique opportunities to interact with the DeFi ecosystem on the Sui platform.
Sui's DeFi ecosystem stands out for its powerful and user-friendly experiences. The combination of low, stable gas fees, lightning-fast transaction speeds, and the elimination of traditional friction points makes Sui particularly attractive for newcomers. Now that you have a general understanding of how DeFi on Sui works, it's time to explore and find what excites you the most in this ecosystem.
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