> For the complete documentation index, see [llms.txt](https://docs.jewelswap.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.jewelswap.io/sui/navi-loop.md).

# NAVI Loop (jnUSDY, jnUSDSUI)

NAVI Loop is a JewelSwap Labs vault on Sui that supplies a stablecoin to NAVI, borrows the same coin against it and supplies that too. Deposit USDY or USDSUI, receive jnUSDY or jnUSDSUI, and the keepe

{% hint style="danger" %}
**Deposits are paused (since 2026-10-29).** NAVI pays its rewards on a vault's net position (supplied minus borrowed), so leverage does not multiply them, and at current NAVI rates the loop earns less than the same coin supplied to NAVI without leverage. The keeper keeps both vaults at **1x** (supplied, nothing borrowed) until levering pays again. **Withdrawals, queued requests and claims still work.** The page is still reachable at [sui.jewelswap.io/labs/navi-loop](https://sui.jewelswap.io/labs/navi-loop) for exits, though it is no longer in the app's menu.
{% endhint %}

{% hint style="warning" %}
**Labs / beta.** NAVI Loop is a new, **unaudited** vault. Deposits are capped at about **$10,000 per vault** during the beta. Only deposit amounts you can afford to lose. Yields shown in the app are estimates from current NAVI rates, not promises.
{% endhint %}

## In one paragraph

**NAVI** is a lending market on Sui. NAVI Loop deposits your stablecoin into NAVI, borrows the **same** stablecoin against it, deposits that too, and repeats until the loan is about 62–67% of the deposit. This is called **looping**. You earn NAVI's supply rate on several times your deposit and pay borrow interest on the borrowed part. NAVI's rewards are paid on the net position only, so leverage does not increase them. Because the vault borrows the same coin it supplies, a price move cannot push it toward liquidation. In return for your deposit you get a vault share token (**jnUSDY** or **jnUSDSUI**). A JewelSwap keeper runs the loop, borrows only when the loop beats holding the coin, and every step it takes is checked by the vault contract on-chain.

## The two vaults

| Vault           | You deposit | You receive | Target LTV | NAVI's LTV limit | Leverage | How the keeper levers                                           |
| --------------- | ----------- | ----------- | ---------- | ---------------- | -------- | --------------------------------------------------------------- |
| **USDY Loop**   | USDY        | jnUSDY      | 62%        | 70%              | ≈ 2.6x   | One step, using a NAVI flash loan                               |
| **USDSUI Loop** | USDSUI      | jnUSDSUI    | 67%        | 75%              | ≈ 3.0x   | A few borrow-and-resupply steps (NAVI has no USDSUI flash loan) |

## How it works

```
                      deposit USDY                     supply USDY
   ┌───────────┐  ───────────────►  ┌──────────────┐  ───────────────►  ┌────────────────┐
   │    You    │                    │  JewelSwap   │                    │   NAVI pool    │
   │ (jnUSDY)  │  ◄───────────────  │    vault     │  ◄───────────────  │  supplied 263  │
   └───────────┘   withdraw / claim │ owns 1 NAVI  │   borrow USDY      │  borrowed 163  │
                                    │   account    │   (loop to 62%)    └────────────────┘
                                    └──────▲───────┘
                                           │ every 10 min: lever · unwind · fund exits
                                    ┌──────┴───────┐       ┌───────────────────────────┐
                                    │    Keeper    │ ────► │     On-chain checks       │
                                    │ (JewelSwap)  │       │ step reverts if it fails  │
                                    └──────────────┘       └───────────────────────────┘
```

### Step by step

1. **You deposit** USDY (or USDSUI) and receive jnUSDY (or jnUSDSUI) at the current share price.
2. **Your coins wait in the vault** until the keeper's next run, at most about 10 minutes.
3. **The keeper levers, if it pays.** It supplies the idle coins to NAVI. If NAVI's current rates make the levered loop beat the same coin supplied unlevered by at least 0.5 points a year, it also borrows the same coin and supplies that too, until the loan reaches the target LTV. Otherwise it leaves the vault at 1x.
4. **The position earns.** NAVI pays its supply rate on everything supplied and its rewards on the net position. The vault pays borrow interest on what it borrowed. The difference flows into the share price.
5. **You exit.** If the vault holds enough idle cash, your withdrawal is paid instantly. Otherwise you receive a **withdrawal ticket**, priced at that moment. On its next run the keeper repays part of the loan, withdraws your share from NAVI and funds tickets in the order they were created. You then claim.

### A worked example: 100 USDY at 62% LTV

|                                          | Amount              |
| ---------------------------------------- | ------------------- |
| Your deposit (your equity)               | **100 USDY**        |
| Supplied to NAVI (100 ÷ (1 − 0.62))      | **≈ 263 USDY**      |
| Borrowed from NAVI (263 − 100)           | **≈ 163 USDY**      |
| Loan-to-value (LTV): borrowed ÷ supplied | 163 ÷ 263 ≈ **62%** |

Your 100 USDY now earns NAVI's supply rate on 263 USDY, NAVI's rewards on the net 100 USDY, and pays borrow interest on 163 USDY.

{% hint style="info" %}
Your deposit is pooled with everyone else's. The numbers above describe your *share* of one shared NAVI position.
{% endhint %}

## Where the yield comes from

> **Net yield ≈ coin's own yield + supply rate × L + supply rewards − borrow rate × (L − 1) − fees**

Here **L** is the leverage (≈ 2.6 for USDY, ≈ 3.0 for USDSUI).

* **USDY's own yield** (from US Treasuries) is built into USDY's price. A same-asset loop borrows USDY and supplies USDY, so that price growth cancels out on the borrowed part. You earn it **once**, on your own deposit, not times L.
* **NAVI's rewards** are paid in vSUI, and **they don't lever**. NAVI nets a same-coin position before paying rewards: it counts supplied minus borrowed as the supply that earns rewards, and the vault has no net borrow to earn borrow rewards on. So the loop earns the supply reward on your own deposit, once, the same as supplying without leverage. NAVI sets and can change its rewards at any time. The keeper claims them and swaps them into the vault's coin; they reach the share price only after that.
* **NAVI charges a 0.30% fee** on each new borrow, added to the debt. The entry fee is sized to cover it.

{% hint style="warning" %}
**Leverage only pays when the supply rate beats the borrow rate.** Because rewards don't lever, the only thing leverage multiplies is the gap between NAVI's supply rate and its borrow rate (plus the 0.30% borrow fee). On NAVI the borrow rate is normally above the supply rate, so each borrowed coin costs more than it earns. That is why deposits are paused and the keeper holds the vaults at 1x.
{% endhint %}

The app shows a live breakdown of each part, using NAVI's current rates.

## Fees

| Fee         | USDY Loop                            | USDSUI Loop | Where it goes                                                      |
| ----------- | ------------------------------------ | ----------- | ------------------------------------------------------------------ |
| Entry       | 0.50%                                | 0.60%       | Stays in the vault to cover NAVI's borrow fee on your levered part |
| Exit        | 0.10%                                | 0.10%       | Stays in the vault                                                 |
| Performance | 10% of gains above the previous high | 10%         | JewelSwap treasury, paid as vault shares                           |

A full round trip (in and out) costs about **0.6%** in total. On a very short hold the fees can be larger than the yield.

## Safety mechanisms

* **The keeper only borrows when it pays.** Before borrowing, it compares the levered loop with the same coin supplied unlevered at NAVI's current rates and borrows only if the loop is ahead by at least 0.5 points a year. If it can't read NAVI's rates, it doesn't borrow.
* **The vault checks every keeper step on-chain.** The keeper borrows the vault's NAVI account for one transaction and must hand it back at the end. Before taking it back, the contract checks that:

  * the vault lost no more value than NAVI's borrow fee on any new debt;
  * the LTV is at or under the vault's ceiling (66% for USDY, 71% for USDSUI), or lower than before the step;
  * the vault owes nothing on NAVI except its own coin;
  * no new debt was taken while the vault is paused or de-risking;
  * total losses stay under **1% of the vault per day**.

  If any check fails, the whole transaction reverts.
* **Deposits and exits never call NAVI directly.** They only read NAVI's books. A NAVI upgrade therefore cannot block your deposit, withdrawal or claim.
* **Share price comes from NAVI's own records**: NAVI supply − NAVI debt + idle cash − amounts owed to queued exits. The vault cannot report a balance NAVI does not hold.
* **Pause and de-risk.** JewelSwap can pause new deposits and new borrowing, or switch a vault to de-risk mode so the keeper only unwinds. Withdrawals and claims keep working.
* **Beta cap.** Each vault accepts about $10,000 in total during the beta (8,700 USDY, 9,990 USDSUI).

## Risks

* **Beta, unaudited contract.** The vault contract is new and has not been audited. Deposits are capped while it runs in beta.
* **Rate risk.** Leverage multiplies the spread between NAVI's supply and borrow rates. If the borrow rate is above the supply rate, a levered vault earns less than simply holding the coin, and can lose value.
* **Rewards don't lever.** NAVI pays rewards on the net position, so leverage adds borrow cost without adding rewards. NAVI can also cut or end its rewards at any time. Yields are variable.
* **Exit liquidity.** Queued exits need free coins in NAVI's pool. If the pool is fully borrowed, tickets wait until borrowers repay or new suppliers arrive. NAVI's USDSUI pool is heavily borrowed, so this risk is higher for the USDSUI Loop.
* **Liquidation.** Because both sides are the same coin, a price move does not change the vault's LTV. LTV only rises if borrow interest outpaces supply interest for a long time. The keeper unwinds long before NAVI's limit, but if the keeper stopped for weeks the position could drift toward it.
* **Keeper risk.** If the keeper is down, deposits sit unlevered and queued exits wait. The keeper cannot take funds: the on-chain checks above bound every step.
* **NAVI risk.** Funds sit in NAVI's lending market. A bug, oracle failure, pause or governance change at NAVI affects the vault directly.
* **Admin keys and upgrades.** JewelSwap can change fees within hard limits set in the contract, pause the vault, and upgrade the contract.
* **Short holds.** Entry, borrow and exit fees total about 0.6% per round trip, which can exceed the yield on a short hold.
* **The coin itself.** USDY is issued by Ondo and depends on its reserves and redemptions; it is not offered to US persons. USDSUI depends on its issuer's reserves. A depeg reduces the vault's value one-for-one.

## FAQ

**Can the vault be liquidated if USDY's price moves?** No. It borrows the same coin it supplies, so collateral and debt move together and the LTV stays the same.

**How long does a queued withdrawal take?** Usually one or two keeper runs (10–20 minutes). It can take longer if NAVI's pool has little free liquidity.

**Why is the USDY yield not levered?** USDY's Treasury yield shows up as USDY's price rising. The vault also owes USDY, so on the borrowed part the price rise is owed back. Only your own deposit keeps it.

**Can JewelSwap take my deposit?** The keeper cannot: every step is checked on-chain and bounded. The admin key can pause the vault and upgrade the contract.

## Contract addresses (Sui mainnet)

| Object                                                                                | Address                                                                                  |
| ------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------- |
| Package (latest, v2: daily loss budget keyed to the day's largest NAV; calls go here) | `0xd92726173a68b45073e59592bec7000b12aa114e733c597a8850e4236b072298`                     |
| Package (original id, used in type names)                                             | `0x33152abfb7925562297021fc1fadb08a9bdcf7376af0fec65769fb0a61d18f65`                     |
| USDY Loop vault                                                                       | `0x94c3f364febbf735aa11ddde01718a38bdf5478cb314f1bd0fc636b0b136d49c`                     |
| USDSUI Loop vault                                                                     | `0x11307d2cdaac1b5f5ec615deb88987fec884bd2be80dac32b2f9160ad4dc8559`                     |
| jnUSDY coin type                                                                      | `0x33152abfb7925562297021fc1fadb08a9bdcf7376af0fec65769fb0a61d18f65::jnusdy::JNUSDY`     |
| jnUSDSUI coin type                                                                    | `0x33152abfb7925562297021fc1fadb08a9bdcf7376af0fec65769fb0a61d18f65::jnusdsui::JNUSDSUI` |