Vault Strategy

The SuiDollar USDC Vault employs a two-part delta neutral strategy designed to maximise the yield captured from the Sui basis trade.

The Vault is built on top of 2 well-established Sui DeFi protocols, namely: NAVI Protocol and Bluefin Exchange. NAVI Protocol is the largest decentralised lending protocol on Sui, with a TVL of $500m at the time of writing. Bluefin Exchange is Sui's largest decentralised perpetual futures exchange, having processed more than $34B in trading volumes.

The Strategy

SUI tokens are supplied to NAVI lending markets and a delta hedge is executed on Bluefin, thereby creating a delta neutral onchain USDC position. This position is maintained through time while earning the following sources of income:

• NAVI Interest Income

• Bluefin Funding Income and Basis Spread

At the time of writing, SuiDollar USDC Vault depositors are earning 37.07% APY on their USDC position. This can be broken down into the following components:

• NAVI Interest Income: 4.45% APY

• Bluefin Funding Income: 32.62% APY

NAVI Protocol: https://naviprotocol.io

Bluefin Exchange: https://bluefin.io