Suilend launches SpringSui to accelerate liquid staking on Sui

Suilend, a decentralized finance (DeFi) platform specializing in lending and borrowing, has recently unveiled a groundbreaking liquid staking standard designed specifically for the layer 1 blockchain network known as Sui. The announcement regarding the launch of SpringSui was made on October 31, and was detailed in a press release sent to crypto.news, emphasizing that this new standard aims to significantly accelerate the growth of liquid staking tokens within the Sui ecosystem.

According to the team at Suilend, the development of SpringSui is built upon the foundational upgrades introduced through SIP-31 and SIP-33, which laid the groundwork for a new token standard dedicated to liquid staking on the layer 1 network. With the successful deployment of SpringSui, Suilend has proudly introduced its first liquid staking token (LST) named Spring SUI. This new token is expected to enhance the staking ecosystem of Sui by enabling a broader range of web3 users to participate in staking activities, thereby bolstering liquidity and facilitating yield generation opportunities. These benefits will be accessible not only on Suilend but also across other decentralized finance protocols within the ecosystem.

Rooter, the founder of Suilend, expressed optimism about the potential impact of liquid staking tokens, particularly highlighting the role of leveraged staking, an area that SpringSui is specifically designed to enhance. “I believe SpringSui will unlock a new era for liquid staking on Sui,” Rooter commented, suggesting that this innovation could transform the way staking is approached within the network.

It is noteworthy that the liquid staking market on Ethereum has witnessed substantial growth, reaching 41%, with Ether.fi identified as one of the key contributors to this expansion. In comparison, liquid staking tokens account for approximately 6.6% of the staking market on Solana. However, Sui has experienced a slower adoption rate, with liquid staking currently representing only 1.8% of its staking market.

To stimulate the growth of this market on the Sui network, Suilend has taken a significant step by open-sourcing the SpringSui Standard, thereby making the framework available to the entire Sui ecosystem. This initiative is expected to foster innovation and collaboration among developers and projects looking to integrate liquid staking capabilities.

Aftermath, a well-known provider of liquid staking tokens on Sui, is among the first entities to adopt this new framework in its product offerings, indicating a positive reception within the community.

According to data from DeFiLlama, the total value locked (TVL) in protocols operating on the Sui network currently stands at approximately $1.47 billion. NAVI Protocol holds the largest share of this TVL, amounting to $436 million, while Suilend ranks second with $277 million. Meanwhile, the cumulative total value locked in the broader liquid staking market has reached nearly $48.2 billion, underscoring the growing significance of this segment within the decentralized finance landscape.