Suilend, a decentralized finance lending and borrowing platform, has introduced a new liquid staking standard for the layer 1 blockchain network Sui. The DeFi platform announced the launch of SpringSui on October 31. This new standard aims to accelerate the growth of liquid staking tokens on Sui.

According to the Suilend team, SpringSui builds on the recent SIP-31 and SIP-33 upgrades, which have introduced a new token standard for liquid staking tokens on the layer 1 network. Following the deployment of SpringSui, Suilend has unveiled its first LST, Spring SUI.

Strengthening Sui’s Staking Ecosystem

Spring SUI is set to enhance Sui’s staking ecosystem by enabling more web3 users to participate. It supports both liquidity and yield generation, providing opportunities available on Suilend and other decentralized finance protocols.

Leveraged Staking Benefits

According to Rooter, founder of Suilend, the growth of liquid staking tokens benefits significantly from leveraged staking, an area that SpringSui aims to enhance.

I think SpringSui will unlock a new era for liquid staking on Sui.

Comparative Growth in Liquid Staking Markets

Notably, the liquid staking market on Ethereum has grown to 41%, with significant contributions from key drivers. On the other hand, LSTs account for about 6.6% of the staking market on Solana. Comparatively, it’s only 1.8% on Sui, reflecting a slower uptake.

Open-Source Framework for Accelerated Growth

To accelerate market growth on Sui, Suilend has open-sourced the SpringSui Standard, making the framework accessible to the entire Sui ecosystem. Aftermath, a prominent liquid staking token provider on Sui, is among the first to adopt the new framework for its product offerings.

Total Value Locked in Sui Protocols

According to DeFiLlama, the total value locked (TVL) in Sui protocols is currently $1.47 billion. NAVI Protocol holds the largest share with $436 million, while Suilend follows with $277 million. Meanwhile, the combined TVL of the liquid staking market is nearly $48.2 billion.

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