Sui
Sui is a high-performance Layer 1 blockchain designed for speed, scalability, and low transaction costs. Launched in May 2023 by Mysten Labs, Sui uses parallel transaction processing and an object-based model to deliver near-instant finality and minimal fees - making it an attractive destination for liquidity providers seeking efficient DeFi opportunities.
This guide covers how LPing works on Sui and highlights the major protocols where you can earn: Cetus and Momentum. Sui's DeFi ecosystem has grown rapidly, reaching approximately $2 billion in total value locked (TVL) by early 2025, with Cetus contributing the largest share.
⚙️ Sui at a Glance
- Block time: Near-instant finality
- TPS (real-world): High throughput via parallel processing
- Avg. transaction cost: Very low (fractions of a cent)
- Smart contract language: Move (Rust-based)
- Consensus: Delegated Proof-of-Stake (DPoS)
Sui's parallel transaction execution and object-based architecture make it ideal for high-frequency DeFi strategies where speed and cost efficiency matter.
🧠 Why LP on Sui?
- Ultra-Low Fees: Transaction costs are minimal, enabling frequent rebalancing and active LP strategies without gas eating into profits.
- Fast Finality: Near-instant transaction confirmation means you can react to market movements in real-time.
- Growing Ecosystem: Sui's DeFi TVL has reached $2 billion, with active development and new protocols launching regularly.
- Modern Architecture: Parallel processing and object-based design enable efficient, scalable DeFi applications.
🐟 Where to LP on Sui
| Protocol | Model | Key Features |
|---|---|---|
| Cetus | Concentrated Liquidity (CLMM) | Uniswap V3-style LPing, largest TVL on Sui |
| Momentum | AMM | Emerging DEX with growing liquidity, SUI-USDC pays heavily |
🦎 Cetus
Cetus is the largest DEX on Sui by TVL and offers concentrated liquidity similar to Uniswap V3. You choose a price range, and only earn fees when trades occur within it. Tight ranges mean higher yield potential - but require active management.
- Fee tiers: Multiple tiers available (typically 0.01%, 0.05%, 0.3%, 1%)
- Best for: Active LPs who can monitor price trends and adjust ranges
- Rewards: Many pools offer CETUS or partner token incentives
- Status: Leading DEX on Sui with significant TVL
⚡ Momentum
Momentum is an emerging DEX on Sui that provides AMM-based liquidity provision. As the Sui ecosystem grows, Momentum offers additional opportunities for LPs seeking diversification across protocols.
- Model: AMM-based liquidity pools
- Best for: LPs looking to diversify across multiple Sui protocols
- High-yield pair: SUI-USDC pays heavily - one of the most attractive pools on Momentum
- Status: Growing protocol with expanding liquidity
📊 Strategy Snapshot
| Protocol | Active or Passive? | Risk of IL | Rebalancing Needed | Status |
|---|---|---|---|---|
| Cetus | Active | High (tight range) | Yes | ✅ Active |
| Momentum | Active/Passive | Medium-High | Yes (if narrow) | ✅ Active |
⚠️ Risks to Watch
- Volatility: SUI and DeFi token prices can move quickly. Impermanent loss is a real risk, especially with concentrated liquidity positions.
- Protocol risk: Sui is a newer blockchain (launched 2023), and protocols are less battle-tested than Ethereum counterparts. Smart contract bugs or governance changes can affect LPs.
- Ecosystem maturity: While growing rapidly, Sui's DeFi ecosystem is still developing. Some pools may have lower volume or liquidity depth compared to more established chains.
- Fragmentation: Multiple protocols mean LPing in low-volume pools can result in low or zero returns.
🧰 Tools & Analytics
- DeFiLlama - Sui - Track TVL, volume, and protocol metrics across Sui
- Cetus Analytics - Monitor pools, fees, and positions on Cetus
- Sui Explorer - Explore transactions and network activity
🧭 TL;DR
Sui is a fast, low-cost blockchain ideal for active liquidity providers. With near-instant finality and minimal transaction fees, Sui enables strategies that would be prohibitively expensive on Ethereum. Cetus leads the ecosystem with concentrated liquidity pools, while Momentum offers additional opportunities for diversification. As Sui's DeFi ecosystem continues to grow (reaching $2B+ TVL), it presents an attractive option for LPs willing to navigate a newer but rapidly maturing ecosystem.
Note: Always monitor pool volume and liquidity depth, as newer ecosystems can have more fragmented liquidity. Use DeFiLlama to track protocol performance and identify the most active pools.