What is Volo Staked SUI (VSUI)?

Deep Dive

1. Purpose & Value Proposition

VSUI solves the liquidity-staking dilemma by allowing SUI holders to simultaneously:
- Earn staking rewards (via Sui Network’s PoS consensus)
- Use voloSUI tokens in DeFi protocols like lending/borrowing markets
- Participate in governance through its DAO structure

This creates capital efficiency – users avoid opportunity costs from locked assets while securing the network. The $50M TVL (as of July 2025) signals strong product-market fit.

2. Technology & Ecosystem

Built on Sui Network’s high-throughput blockchain, VSUI leverages:
- Liquid staking contracts: Mint 1:1 voloSUI for staked SUI, redeemable anytime
- Byzantine Fault Tolerance: Ensures network security despite malicious nodes
- DeFi integrations: Partners like Navi Protocol enable yield farming with voloSUI

The 2021 acquisition by Navi Protocol strengthened its position in Sui’s ecosystem, linking staking to borrowing/lending markets.

Conclusion

VSUI exemplifies DeFi’s evolution toward fluid asset utilization, though its success remains tied to Sui Network’s adoption. How might emerging liquid staking competitors impact VSUI’s $50M TVL dominance?