Suilend: Sui’s DeFi Hub

Time and time again, we are reminded that a first-mover advantage isn’t a strong moat in DeFi. The Suilend team is all too familiar with this phenomenon, as they were on the other side of the equation by being the first movers on Solana via Solend, only to be dethroned by Kamino in a matter of months. Having learned this lesson, Suilend is running the Kamino playbook on Sui, building core products tightly integrated with their lending offering, creating a virtuous growth cycle. 

We believe SEND is a fundamental play on Sui DeFi with a good risk/reward profile. SEND’s low redemption rate suggests that users are not leaving after TGE, though it’s important to point out a number of risks:

• Lack of insurance fund: Suilend does not have an insurance fund, meaning that any bad debt losses will be immediately socialized amongst the protocol’s lenders.
• Smart contract risk: Suilend has undergone audits from Zellic and OtterSec. However, the risk of a bug on the platform that could put funds at risk can only be minimized, not entirely eliminated.
• Market competition: just as Suilend disrupted Sui’s lending and liquid staking market as a new entrant, new competitors will likely emerge that challenge Suilend’s dominance. Moreover, it will be crucial to monitor if Suilend maintains its growth rate without the initial airdrop incentives.