The Sui Foundation has announced the allocation of 117 million SUI as an ecosystem fund to enhance the growth of its DeFi landscape. The foundation which is responsible for the management and development of the Sui blockchain made the announcement today.
As revealed, the allocated funds will be directed towards growing the DeFi ecosystem of Sui. Also, a part of the funds will support its on-chain central limit order solution, DeepBlock. According to the announcement external market makers will provide the ecosystem fund which is worth $51.3 million.
Further, the foundation disclosed that it will offer grants to DeFi developers. This move according to the foundation will encourage developers to build the “next generation of decentralized applications” on the network. As indicated, the DeFi segment of Sui will be one of the beneficiaries of the fund owing to the adoption it has enjoyed ever since the launching of the network.
Also, the announcement indicated that funds will be directed at supporting DeepBook CLOB, automated market makers, liquid staking, and lending protocols on the network. Similarly, the firm indicated that the disbursement of the funds will as well flow into important other areas. Meanwhile, the foundation established that the new ecosystem fund will not affect the circulating supply of Sui.
Lately, the network has intensified efforts towards ensuring the growth of the ecosystem. Recall that on October 3, 2023, the foundation awarded 25 million SUI to the winners of its liquid staking hackathon. Now, the newly allocated 117 million SUI will help build on the landmark achievement the network has recorded so far.
Side notes on Sui blockchain
Since the launching of the layer 1 network’s mainnet in May 2023, Sui has been making major headlines. The network is popular as one of the fastest-growing ecosystems in the crypto landscape. Recently, DefiLlama, a popular Total Value Locked (TVL) aggregator announced that the network has achieved its highest TVL ever.
According to the aggregator, Sui’s TVL hit about $37 million. This figure, as revealed, represents a 100% increase in the network’s TVL compared to what was recorded about two months ago. Consequently, the Sui Foundation behind the network is aiming to build on this success with the allocation of a part of the ecosystem fund to the DeFi landscape.