Protocol Updates
Volo V2 - A Generational Leap for Liquid Staking on Sui
Volo releases V2, a
Volo Official
5.05.2025 00:00
TLDR;
- Volo V2 Upgrade: A major evolution of the Volo liquid staking protocol on Sui, enhancing scalability, security, and user experience.
- Key Features: Instant unstaking, decentralized reward management, fee rebate mechanism, improved delegation, and instant LST conversion to vSUI.
- Benefits: Eliminates unbonding delays, optimizes capital efficiency, reduces costs, and enhances vSUI interoperability in DeFi.
- Impact: Positions Volo V2 as a cornerstone of the Sui Network, driving innovation in decentralized staking.
Volo, as a leading liquid staking protocol on the Sui Network, has transformed decentralized finance (DeFi) by enabling SUI holders to stake assets while retaining liquidity through its vSUI token.
Since its mainnet launch, Volo V1 has empowered users to stake SUI, earn rewards, and utilize vSUI across DeFi applications like lending, borrowing, and trading, all while enhancing the Sui Network’s security and decentralization.
By addressing capital inefficiencies inherent in traditional staking, Volo V1 has offered unparalleled flexibility, allowing users to participate in staking without locking up assets or requiring technical expertise.
Taking this capital efficiency in liquid staking one step further, Volo is ready to evolve vSUI into a more optimized and modernized LST/
The forthcoming Volo Liquid Staking V2 upgrade marks a significant evolution, introducing cutting-edge features to enhance scalability, security, and user experience.
Volo V2 Explained
Volo has been gearing up for this upgrade for a while now. Initially jumpstarted with the UI and website overhaul, this Volo V2 evolution goes even further & aims to set a new standard for decentralized staking protocols.
Key upgrades include Instant Unstaking, Decentralized Reward Management, a novel fee rebate mechanism, and an improved delegation mechanism, ensuring seamless integration across DeFi platforms.
These advancements position Volo V2 as a cornerstone of the Sui Network, driving innovation in liquid staking.
Instant LST Conversion to vSUI
Another important change to the Volo contract is the capability to instantly convert any LST on Sui into vSUI.
This conversion will allow users to switch directly from another LST to vSUI and take advantage of its ramifications in the chain's broad DeFi ecosystem. Furthermore, this feature will optimize LST capital efficiency even further.
The instant migration from one protocol to another empowers users with streamlined access to advanced DeFi strategies.
Key Benefits of Volo V2 Upgrade:
- Instant Unstaking: Eliminates the 24-hour unbonding period, enabling immediate access to staked SUI for maximum liquidity.
- Decentralized Reward Management: Volo V2 calculates the exchange ratio using the total vSui supply and the sum of the principal and reward, fully on-chain. In contrast to V1, where rewards were calculated via backend RPC calls and input into the smart contract by the operation.
- Fee Rebate Mechanism: Reduces user costs by redistributing a portion of fees, incentivizing long-term participation.
- New Delegation Mechanism: Optimizes validator selection for improved network security and staking efficiency.
- Fungible Staked SUI: Enhances vSUI’s interoperability, enabling broader use in DeFi ecosystems.
Conclusion
Volo V2 represents a transformative leap for liquid staking on the Sui Network, delivering unmatched flexibility, efficiency, and accessibility for SUI holders.
With features like instant unstaking, decentralized reward management, and seamless LST conversion, Volo V2 not only enhances user experience but also strengthens the Sui ecosystem’s DeFi capabilities.
By setting a new benchmark for staking protocols, Volo V2 is poised to drive widespread adoption and innovation in decentralized finance. Stay tuned as the team is preparing some advanced DeFi features that will take advantage of Volo V2 in the following days/weeks.