Market Opportunity

AI has become one of the most important technologies in modern history. Today, 75% of businesses aim to integrate AI into their operations by 2026, while 63% of users are open to letting autonomous agents manage their funds.

The DeFAI market, currently standsing at $535.96 million in valuration, is expected to expand rapidly, with projections indicating a 10x growth in 2025 alone. DeFi itself is currently valued at $101.6 billion, while AI is $7.2 billion, respectively. In the broader AI Agent sector, Solana leads with a market capitalization of $2.26 billion, followed by Base at $1.74 billion, contributing to a total AI market cap of $6.9 billion. Within DeFAI specifically, Solana remains at the forefront with a market cap of $296.74 million, while Base trails at $166.7 million.

At the center of all this is NODO’s rapidly growing Total Addressable Market, and our Serviceable Obtainable Market is a growing $335.96 million in DEX-based TVL on Sui. Backed by Sui Hydropower, NODO Labs is building an agentic AI-powered return-generating ecosystem that brings the best of Sui DeFi to investors on any chain.

Layer 1: Primary Yield Market

Layer 1 consists of the fundamental building blocks where yield is directly generated. This includes lending protocols and decentralized exchanges (DEXs), which form the core of Ethereum’s DeFi market.

Lending Protocols (Stable APY Generation)

Lending protocols generate yield through interest payments on borrowed assets. Users supply assets to lending pools and earn yield from borrowers who pay interest. The yield is relatively stable, depending on supply-demand dynamics and protocol incentives.

• Aave: $15.4B TVL

• Morpho: $2.6B TVL

• Compound: $2B TVL

• Curve Lending: $1.685B TVL

These protocols typically offer predictable returns based on loan utilization rates and algorithmic interest rate models.

Decentralized Exchanges (DEXs) (Highly Variable Yield)

DEXs generate yield through trading fees and liquidity mining. Liquidity providers (LPs) earn fees from swaps within the pool, and some platforms offer additional incentives in the form of governance tokens.

• Uniswap: $3B TVL

Unlike lending protocols, yields on DEXs fluctuate significantly depending on trading volume, impermanent loss, and incentive structures.

Market Opportunity in Layer 1

To estimate the potential earnings, assume our AI-optimized yield protocol captures 1% of TVL across Layer 1 protocols:

• Lending Market TVL Total: $21.685B

• DEX TVL Total: $3B

• Total Layer 1 TVL: $24.685B

• 1% Market Capture: $246.85M

• Revenue at 1% Fee: $2.47M annually

Layer 2: Yield Aggregators

Layer 2 protocols do not generate yield but aggregate it by deploying funds across Layer 1 strategies to optimize returns. These platforms auto-compound rewards, optimize pool selection and enhance capital efficiency.

Key Yield Aggregators

• Yearn Finance: $190M TVL

• Convex Finance: $900M TVL

• Beefy Finance: $250M TVL

These platforms source yield from Layer 1 protocols, deploying strategies such as liquidity provision, staking, and lending optimizations.

Market Opportunity in Layer 2

Capturing 1-5% of the total TVL in Layer 2 provides a range of possible market penetration scenarios:

• Total Layer 2 TVL: $1.34B

• 1% Market Capture: $13.4M TVL | Revenue at 1% Fee: $134K annually

• 5% Market Capture: $67M TVL | Revenue at 1% Fee: $670K annually

Total Market Opportunity Estimate

If the AI-optimized yield protocol captures 1% of Layer 1 and 1-5% of Layer 2, the total revenue potential from a 1% fee model ranges between $2.6M to $3.14M annually.

Our protocol can either:

1. Directly play in Layer 1 by allocating capital to lending pools or DEXs.

2. Operate in Layer 2 by optimizing yield aggregation strategies.

The key advantage is leveraging AI-driven optimization to predict APY fluctuations, rebalance funds, and maximize yield extraction. With strategic execution, capturing market share in both layers can unlock sustainable revenue growth in Ethereum’s DeFi ecosystem.

Detailed Opportunity Analysis

Core DeFi Market in Sui and Core Partners

1. Cetus AMM:

   • TVL and 24HR Volume: Cetus is a decentralized exchange (DEX) and concentrated liquidity protocol on Sui and Aptos. While specific TVL figures for Cetus alone is $147 million, it is part of the broader Sui ecosystem, which has a TVL of approximately $1.2 billion as of March 2025 The 24-hour trading volume for Cetus is substantial, with the most active pair being suiUSDT/USDC

   • Earning Potential: Cetus's TVL is 12.25% of Sui's total TVL, capturing 1% of the entire Sui TVL would yield $15 million (based on $1.5 billion TVL).

2. Scallop:

   • DeFi Protocol: Scallop is a lending and borrowing protocol on Sui, offering competitive interest rates and seamless composability 5.
   • Earning Potential: Similar to Cetus, if Scallop's TVL is part of Sui's total, capturing 1% of Sui's TVL would yield $15 million.

3. Suilend:

   • DeFi Platform: Suilend is a decentralized lending and borrowing platform on Sui, known for its user-friendly interface and competitive interest rates67.
   • Earning Potential: Again, capturing 1% of Sui's TVL would yield $15 million.