SuiStrategy: Protocol Overview

Inspired by ETH Strategy Protocol. Built natively on Sui.

Demo | Demo video | Pitchdeck

Overview

SuiStrategy is an autonomous, composable treasury protocol on the Sui network designed to accumulate SUI through structured debt and token-based strategies, while enabling cross-chain exposure and advanced financial primitives via integration with the 1inch Fusion+ and 1inch Limit Order Protocol.

By reimagining convertible bonds and treasury growth mechanics in a modular Sui-native environment, SuiStrategy introduces SSTR, a token that offers leveraged exposure to SUI with managed downside risk and no forced liquidation. The protocol is also uniquely designed to enable cross-chain exposure to ETH and USDC through 1inch Fusion+, while offering sophisticated order types like TWAP, options, and range orders via the 1inch Limit Order system.

Background

With growing institutional interest in Sui—highlighted by activity from Fireblocks, Grayscale, and the ongoing development of stablecoins and potential ETF products—the Sui ecosystem is maturing into a high-performance Layer 1 suitable for both infrastructure and strategic finance.

Yet, structured DeFi primitives such as leverage, convertible notes, and cross-chain execution remain underdeveloped on Sui. SuiStrategy aims to fill that gap.

Objectives

1. Accumulate a large on-chain treasury primarily denominated in SUI
2. Offer leveraged exposure to SUI via the SSTR token
3. Enable cross-chain market entry/exit using ETH, USDC, and other L1 assets via 1inch Fusion+
4. Provide structured, automated execution strategies through limit orders and time-based systems
5. Use protocol-native debt instruments (convertible notes) to raise capital and stimulate protocol growth

User Roles

There are two main user groups in SuiStrategy:

• SSTR Holders: Represent equity holders with leveraged exposure to SUI
• Bond Purchasers: Debt holders that fund the treasury and receive the right to convert debt into SSTR

Protocol Mechanics

1. Bonding System

Two classes of bonds are used to manage protocol leverage and treasury expansion:

a) Long Bonds (Convertible Debt)

• Users deposit stablecoins (e.g., USDC)

• They receive:

  • CDT (Convertible Debt Token) – Fungible ERC20-style token on Sui
  • NFT Option – Represents a right to convert debt into SSTR before expiry

• Protocol uses the stablecoins to market-buy SUI and deposit it into treasury

b) Short Bonds (Debt Repayment)

• Users deposit CDT + NFT Option to convert their note into SSTR before expiry
• Alternatively, users can return CDT alone after expiry for stablecoins (principal)
• This reduces protocol liabilities and recycles debt into equity

2. Conversion Logic

a) Before Expiry

• Users deposit their NFT Option + CDT
• They receive SSTR tokens at a predetermined conversion ratio
• The protocol burns the NFT and CDT and issues SSTR

b) After Expiry

• Users can redeem CDT and expired NFT for the stablecoin value
• No equity is granted; protocol pays out from treasury

3. Treasury Growth and SSTR Premium

SSTR trades at a premium to its treasury NAV due to the implied premium embedded in convertible notes. The protocol raises 0% interest debt by embedding value in the conversion rights rather than interest. This:

• Increases treasury size (more SUI accumulated)
• Increases value per SSTR holder (as treasury per SSTR grows)
• Avoids dilution unless the note is economically favorable to convert

This dynamic leads to natural positive pressure on SSTR's value as the treasury accumulates SUI.

4. Treasury Lending (Sui-native Aave-like System)

• Treasury SUI is lent into a custom Sui Lending Pool

• Only SSTR tokens can be used as collateral

• STRAT holders can borrow SUI against SSTR with liquidation thresholds

• Benefits:

  • Increases utility of SSTR
  • Generates lending yield for the treasury
  • Protects against RFV attacks by creating a market-based defense layer

SuiStrategy vs ETH Strategy Protocol

Item	ETH Strategy Protocol	SuiStrategy
Network	Ethereum (EVM-based)	Sui (Move-based, high throughput, low fees)
Base Asset	ETH	SUI
Leverage Asset	STRAT (ERC20)	SSTR (Sui-native coin)
Bond Structure	Convertible debt (long/short bonds)	Same structure + NFT options + maintains fungible Sui-native format
Swap Functionality	None (operates only within ETH ecosystem)	✅ 1inch Fusion+ integration: Enables cross-chain swaps (SUI ↔ ETH / USDC)
Strategy Automation	Limited (manual rebalancing)	✅ Powered by 1inch Limit Orders: Enables TWAP, option-style orders, and range orders
Strategic Scalability	STRAT-backed lending via Morpho ETH pool	✅ SSTR-backed SUI lending pool built natively on Sui
User Accessibility	Primarily for ETH DeFi users	✅ Targets Sui-based retail & institutional users (Grayscale, Fireblocks, etc.)
Protocol Revenue Model	Generates implied premium through zero-interest bonds	Same model + earns protocol fees through strategic swaps and automation
Scalability & Modularity	Rigid structure (dependent on Morpho)	✅ Modular strategy setup, 1inch API support, strategy automation vaults
UI/UX Accessibility	Basic smart contract interactions	✅ Optimized UI for dashboard, strategy execution, and auto-ordering
External Integrations	None	✅ Supports 1inch REST/Web3 APIs, cross-chain liquidity, and external data sources

Key Differentiators Summary

Area	SuiStrategy Advantage
Technical Base	Leverages Sui’s object-based architecture and fast performance
Cross-chain Liquidity	Supports SUI ↔ ETH asset swaps via 1inch Fusion+
Strategic Flexibility	Enables TWAPs, option orders, and other strategies through 1inch Limit Orders
Protocol Growth	Combines SUI inflow with decentralized strategy automation, enabling DAO-based expansion
MVP Feasibility	Core components (cross-chain swaps, bond model, vault UI) can be built in 7 days

Protocol Tokens

Token	Type	Description
SSTR	Sui	Represents leveraged SUI exposure (like STRAT in ETH)
CDT	Sui	Fungible convertible debt token
Option NFT	NFT	Non-fungible rights to convert CDT into SSTR

Integration with 1inch

a) 1inch Fusion+

• Enables cross-chain swaps between SUI ↔ ETH / USDC
• Use case: User deposits ETH/USDC on Ethereum → receives SUI on Sui for bonding
• Reverse swap supported for exit strategies
• Seamless integration via 1inch Fusion+ API and Web3 SDK

b) 1inch Limit Order Protocol (Advanced Strategy Layer)

Used for:

• TWAP Swaps: Break up large SUI buys/sells over time
• Options-style Strategies: Use NFT Options + 1inch triggers
• Concentrated Liquidity Simulation: Place limit orders within specific price ranges
• Strategy Automation: Trigger custom orders on specific market events

These features allow SSTR holders and the DAO to build a programmable execution layer directly on-chain without deploying custom market logic.

Summary

SuiStrategy brings structured treasury mechanics and tokenized leverage to the Sui network, drawing direct inspiration from ETH Strategy while extending its potential via:

• Cross-chain asset onboarding (Fusion+)
• Advanced execution strategies (Limit Orders)
• Dynamic conversion mechanics and DAO governance

Roadmap

Phase 1 – MVP & Core Mechanics (Current)

• Long Bonds: SUI → CDT (1:1000 ratio)
• CDT Options: Redeem, invest in Short Bonds, or convert to SSTR
• Basic Short Bond logic: CDT → SSTR minting within expiry
• 1inch Fusion+ Integration: Cross-chain swaps (ETH/USDC → SUI)
• 1inch Limit Order Protocol: Basic TWAP & limit order execution
• Treasury initialized with SUI deposits (hypothetical growth)
• SSTR token static value; rebase planned later

Phase 2 – Expanded Functionality

• Allow fractional SUI deposits
• Launch dashboard for NAV & SSTR metrics
• Enhance Fusion+ flows for two-way swaps (entry & exit)

Phase 3 – Full Protocol Logic

• Implement Short Bond debt buyback & burn mechanism
• Add SSTR redeem function for treasury-backed equity
• Activate dynamic SSTR rebase linked to treasury growth

Phase 4 – Advanced Automation & DAO

• Expand 1inch Limit Order strategies (options-like execution, range orders)
• Launch automated strategy vaults for SSTR holders
• Introduce DAO governance & on-chain strategy management