Technical Docs
Navi's offering includes a decentralized liquidity protocol. It allows users to lend and borrow cryptocurrency assets without intermediaries, using a shared liquidity pool system.
Navi's liquidity pools are created for each supported asset, and users can deposit their assets into these pools. They receive Navi receipt tokens in return, which represent their share of the pool (i.e. nSUI). These tokens can be used as collateral to borrow other assets from the pool. The collateralization ratio determines the amount that can be borrowed, and it is adjusted dynamically based on supply and demand. More in-depth information can be found in Technical Reference.
Overall, Navi's architecture provides a decentralized and efficient way for users to lend and borrow assets, without the need for traditional financial intermediaries.
In the following pages, we'll go in depth into how the NAVI liquidity protocol works in all its aspects, from high-level mechanics to granular risk management features we've implemented
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