Sui has emerged as one of the most prominent Layer 1 (L1) blockchains this cycle, captivating the crypto community with its innovative roadmap and resilience during market volatility. Unlike other Move-based chains, Sui has established a robust ecosystem foundation, setting the stage for significant growth in 2025. This quarter, a series of major launches aim to enhance its DeFi offerings, attract liquidity, expand its user base, and unlock new use cases.
1️⃣ Upgrading DeFi
Sui’s DeFi landscape is poised for transformation with upgrades like Aftermath’s perpetuals market launch and institutional initiatives. The standout catalyst is Steamm, an automated market maker (AMM) by Suilend, designed to optimize idle liquidity.
How Steamm Works
Traditional AMMs distribute liquidity across broad price ranges, leaving capital inactive outside trading zones. Steamm’s "Bank" feature redirects idle funds into Suilend’s lending pools, allowing liquidity providers to earn dual yields:
- Trading fees from active market making.
- Interest from lent idle capital.
Additionally, Steamm issues yield-bearing LP tokens, enabling other Sui DeFi protocols to leverage them for advanced strategies, thereby recycling liquidity across the network.
👉 Explore Sui’s DeFi innovations
2️⃣ Increasing Liquidity
Two key developments aim to boost Sui’s liquidity:
Babylon Labs & Lombard
Efforts to bridge Bitcoin’s $2.2 trillion market to Sui are underway via **LBTC**, a wrapped BTC token by Lombard. Holders can stake BTC while retaining ownership, with yields paid in "points" for future airdrops. Even modest inflows could significantly elevate Sui’s TVL (~$1.8B).
Ika Network
This multi-party computation (MPC) platform enables secure, decentralized cross-chain asset transfers (e.g., BTC, ETH, SOL) without traditional bridges. Its 2PC-MPC model ensures scalability and low latency, enhancing Sui’s interoperability.
3️⃣ Expanding the User Base
Wallet integrations are critical for onboarding new users:
- Phantom: Supports Sui for its 7M active users, offering mobile access and a trusted interface.
- Backpack: Available in 150+ countries, its exchange has processed $60B in volume and now includes Sui functionality.
These integrations lower entry barriers and align with mobile-first crypto trends.
4️⃣ Expanding Use Cases with Walrus
Developed by Mysten Labs, Walrus is a decentralized storage protocol launching this quarter. Key features:
- Red Stuff Erasure Coding: Splits data across nodes, reducing reliance on centralized hosts.
- Applications: Supports AI training, media storage, decentralized frontends, and rollup data availability.
Walrus enables Sui to host data-intensive applications beyond DeFi and NFTs.
Big Upgrades Ahead
Mysticeti v2
Refines Sui’s parallel transaction processing for faster DeFi/gaming confirmations.
SIP-45
Adjusts gas fees during peak demand, ensuring critical transactions aren’t delayed.
FAQs
Q: What makes Sui’s DeFi unique?
A: Move language security, capital-efficient tools like Steamm, and yield-bearing LP tokens.
Q: How does Ika improve cross-chain transfers?
A: By replacing bridges with decentralized MPC, enhancing speed and security.
Q: Why is Walrus significant?
A: It enables scalable decentralized storage, expanding Sui’s utility beyond finance.
Sui’s 2025 roadmap reflects its ambition to host next-gen decentralized services, combining liquidity, usability, and innovation under Move’s secure framework.