HomeAltcoin NewsSuilend Introduces SpringSui for Liquid Staking Revolution.

Suilend Introduces SpringSui for Liquid Staking Revolution.

November 1, 2024

SpringSui introduces the first liquid staking token on Sui, which boosts DeFi.
The standard improves liquidity management and staking rewards for users.

Suilend, a DeFi lending and borrowing firm based on the Sui (SUI) blockchain, has launched SpringSui, a breakthrough standard for liquid staking tokens (LSTs). This new framework introduces Spring SUI (sSUI), the first liquid staking token on the Move-based Sui network. SpringSui seeks to offer new liquidity management solutions within this rapidly expanding ecosystem, with the goal of accelerating LSTFi development.

The Spring SUI (sSUI) token will enable more Web3 users to engage in staking operations on the Sui network. This initiative aims to enhance liquidity and increase yield creation potential for participants. Suilend aims to maximize the potential of liquid staking by implementing the SpringSui standard, which allows users to stake their SUI tokens and collect rewards in a completely non-custodial manner. This initiative is expected to provide a substantial contribution to the development of decentralized finance (DeFi) on Sui.

SpringSui offers a new token standard specifically tailored to facilitate the growth of LSTs inside the Sui ecosystem, following protocol-level changes SIP-31 and SIP-33. As the first token deployed under this framework, sSUI demonstrates SIP-33’s potential. Rooter, the founder of Suilend, expressed excitement about the new protocol. He believes that SpringSui will usher in a new era of liquid staking on Sui. Leveraged staking is the key driver of LST growth, and SpringSui will accelerate it.

Enhancing DeFi Opportunities on Sui Network

Sam Blackshear, CTO of Mysten Labs, the team behind the Sui blockchain, applauded Suilend’s efforts to add liquid staking to the network. He stated that SIP-31 and SIP-33 represent substantial improvements to Sui staking. Adding fungibility to staked tokens will enhance interoperability and open up new use cases.

Liquid staking on Sui is currently less prevalent than on other proof-of-stake networks, with only 1.18% of native tokens staked in liquid staking tokens (LSTs). This indicates a potential opportunity for growth in the liquid staking sector within the Sui ecosystem. In contrast, Solana has 6.6% and Ethereum has 41% of their tokens staked. This difference presents a unique opportunity for early adopters to lock in liquidity on the Sui network, potentially benefiting from the anticipated growth of the DeFi sector.

SpringSui and sSUI aim to transform the liquid staking landscape on the Sui blockchain by making SUI staking more accessible. They also enhance yield-generating options for users, broadening the appeal of staking within the ecosystem.