A new token standard by Suilend – SpringSui – has been announced that has the potential to shake up the staking landscape on Sui. The first proof of concept comes in the form of Spring SUI (sSUI), which will serve as a liquid asset for SUI stakers who can use it to earn additional yield across various DeFi protocols.
Liquid staking tokens (LSTs), the largest DeFi sector by TVL, has been the center of much of the onchain innovation occurring during the current bull market. And now it’s Sui’s turn to capture the upside to the LST craze as it seeks to grow a DeFi vertical that’s been slower to take off here than on Solana and Ethereum.
Spring Comes to Sui
Suilend’s new token standard, SpringSui, marks a significant step forward for liquid staking on Sui, targeting a market that currently lags in liquid staking adoption compared to more established PoS chains. By building on existing token standards SIP31 and SIP33, SpringSui is structured to support broader DeFi use cases and expand Sui’s rapidly growing ecosystem.
The standard, although developed by Suilend, is openly available to all Sui network developers to ensure widespread adoption. Aftermath – an established staking protocol on Sui – has already integrated SpringSui, setting a precedent for others. By encouraging participation from additional platforms, Suilend hopes to stimulate growth and adoption of liquid staking on Sui, bridging the gap between Sui and more mature ecosystems.
A key innovation here is SpringSui’s potential for cross-protocol collateralization. By allowing liquid staking tokens (LSTs) to serve as collateral in lending, borrowing, and potentially in backing collateralized stablecoins, SpringSui could unlock new DeFi functionalities on Sui. While some of these use cases will take time to be developed, in the here and now, growth of LSTs gives greater freedom of choice for Sui users who can utilize their capital more efficiently.
Sui Keeps on Trucking
By all estimates, Sui has been enjoying a remarkable year. Despite stiff competition from a plethora of so-called “next gen” chains competing to be faster and cheaper than anything that’s gone before, Sui has achieved major adoption and delivered tangible use cases rather than simply copying other chains’ homework.
This pace of innovation and adoption is clear to see in the numbers. SUI is up 144% for the year to date, while TVL for Sui protocols now stands at more than $1B. Wallet tracker service Cielo recently added support for the network, providing a way for memecoin traders to identify top traders and follow their moves.
According to Suilend founder Rooter: “I think SpringSui will unlock a new era for liquid staking on Sui. The primary driver of growth for LSTs is leveraged staking, which will be turbocharged by SpringSui.” The onus is now on existing Sui protocols to leverage SpringSui to create their own LSTs. If they’re successful in this endeavor, they’ll free up more liquidity on Sui network, resulting in an improved trading experience for users and fresh opportunities for earning yield while helping to secure Sui through staking.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/10/liquid-staking-on-sui-gets-a-shake-up-with-new-token-standard-from-suilend