Suilend, a lending protocol on the Sui blockchain, saw its total value locked (TVL) surge by 85% over the past week. On August 13, the protocol’s TVL reached a record high of $74.2 million, propelling it to the top four largest decentralized finance (DeFi) apps on Sui. The protocol claims that its TVL hit the $75 million mark earlier today.
Suilend is a DeFi lending product that launched in March 2024 by the team behind Solend, a lending platform for Solana that recently rebranded to Save. Suilend’s TVL has gradually increased to a peak of $66.7 million in mid-June, before losing half of its liquidity value until August 6 amid a bearish sentiment in the broader DeFi market.
The Sui-based protocol has been able to recover last week, with the TVL breaking above the June peak and setting a new record.
At the end of July, Suilend has become a featured dapp in Sui Wallet, which is the official wallet application for the Sui ecosystem. To celebrate this achievement, the lending protocol launched a campaign until mid-August where users can deposit $50 in Suilend for a chance to win a Suilend Capsule NFT.
However, the actual reason behind the growth in TVL may be the sudden increase in the interest rate of USDC deposits, which at one point broke above the 33% mark. As of this writing, the annual percentage rate (APR) for USDC lending has corrected to 21.45%, which is still very high.
Starting with August 6, Suilend has experienced record weekly inflows, with USDC accounting for the greatest part of it. However, on August 13, over $4 million worth of USDC has left the protocol, marking the third-worst day on record for USDC outflows.
Suilend follows in the footsteps of NAVI protocol, currently the largest lending platform on Sui. NAVI also saw its TVL update the record after surging rewards of its USDC pool.
Stay on top of things:
Subscribe to our newsletter using this link – we won’t spam!
Follow us on X and Telegram.
Credit: Source link
