Sui DeFi is facing severe challenges, with collective TVL outflows
According to DeFiLlama data, the TVL of Sui chain DeFi agreements has halved in the past month. In addition to significant outflows after the Momentum airdrop, the mainstream lending agreement NAVI lost 24%, SuiLend lost 40%, and Scallop lost 45%. Moreover, agreements like Haedal, Bluefin, and Cetus also saw TVL losses ranging from 40% to 50%, indicating a collective capital outflow phenomenon in Sui chain DeFi.
Mainstream lending agreement USDC supply and demand are tight, users have difficulty withdrawing coins
The two major lending agreements, NAVI and SuiLend, have a combined TVL exceeding 130 million USD, already accounting for 75% of on-chain TVL. As of the deadline, the USDC usage rate of the two major agreements surged to 100%, which means that unless borrowers repay or more liquidity flows in, users providing USDC liquidity will not be able to withdraw.
Currently, NAVI borrowing annual interest rate is about 56%, SuiLend is 11%, borrowers have to bear high interest costs before repaying. At the same time, NAVI offers 47% annualized, SuiLend 9% to encourage more people to deposit USDC.
NAVI USDC utilization rate 
SuiLend USDC utilization rate
Another lending agreement Scallop USDC utilization rate 76%, still operating normally. The common point of the first two is that they both support the collapsing $deUSD (Sui has invested in the issuer Elixir). Initially suspected whether it was similar to the USDX case, after Elixir abandoned $deUSD, pledged $deUSD to borrow $USDC. After all, $deUSD on Sui still maintains 0.99, while on the Ethereum chain it has already been severely dragged down.
(Stream confirms insolvency! On-chain stablecoin chain explosions: Elixir abandons deUSD, USDX decoupled to 0.5)
But further looking, NAVI has already stopped listing $sdeUSD, the Elixir Market TVL of SuiLend is about 4000 USD, which doesn't have much effect.
This article Sui currency market liquidity is tight! Mainstream lending agreements USDC utilization rate 100%, users cannot withdraw, first appeared in Chain News ABMedia.
