Liquid Staking remains a hot topic among investors, thanks to its applications in the DeFi landscape. Within the Sui ecosystem, Haedal Protocol stands out as a prominent name with the leading TVL
What is Haedal Protocol?
Haedal Protocol is a liquid staking protocol on the Sui network, allowing users to stake SUI to receive the liquid staking token haSUI. Users holding haSUI earn staking rewards that accumulate over time, or they can further utilize haSUI to participate in DeFi activities within the ecosystem and earn additional yield.
According to Defillama, Haedal Protocol currently leads the liquid staking sector in the Sui ecosystem, with a recorded TVL of nearly $200 million.
Currently, Haedal Protocol has not disclosed its tokenomics information. This article will be updated as soon as there is an announcement.
Haedal Protocol’s Products
The main product of Haedal Protocol is the liquid staking token haSUI. haSUI is designed with a yield-bearing mechanism, meaning users profit from holding it as its value increases over time.
Specifically, after each epoch, the value of haSUI is adjusted based on the amount of SUI rewards that users receive from staking. This means the more SUI staked, the higher the value of haSUI.
This formula shows that as the total amount of SUI staked increases, while the total amount of haSUI remains the same, the value of each haSUI token will automatically increase.
Users can hold haSUI to earn interest over time or participate in DeFi activities within the SUI ecosystem, such as providing liquidity in Cetus DEX pools, lending & borrowing in Scallop, etc.
Haedal Protocol Features
Stake
Stake is the core product of Haedal Protocol, where users stake SUI to receive haSUI and participate in other DeFi activities. Within Stake, there are three main features users need to be aware of:
- Stake: Deposit SUI into the protocol and receive haSUI. Users have two options when staking: automated and manual.
- Automated: Haedal Protocol automatically selects the most suitable pool for the user.
- Manual: Allows users to choose the pool they want to stake in.
- Withdraw: Supports users to unstake SUI tokens deposited into the protocol. Additionally, users can also swap haSUI to receive SUI back. The exchange rate between haSUI and SUI is not fixed and is determined by the Cetus DEX.
- Claim: This feature allows users to claim their staking rewards.
DeFi
The DeFi feature provides activities within the Sui ecosystem that support the haSUI token, allowing users to participate and earn yield. Current DeFi activities include:
- Providing liquidity for the haSUI/SUI pair on the Cetus DEX.
- Lending/borrowing haSUI on the Navi lending & borrowing platform.
- Yield farming the haSUI/SUI pair in the Mole protocol.
- Depositing into vaults with the haSUI/SUI pair on the Cetus DEX.
APR for these activities ranges from 0.1% to 17%.
Haedal Protocol’s DeFi Interface
Vault
Users can utilize the Vault feature to deposit SUI tokens and earn haSUI token rewards based on luck. Each week, the system randomly selects a number of users from those who have staked in the vault to award prizes.
The number of haSUI tokens awarded each week is fixed. The luckiest user receives the largest reward, and the remaining rewards are divided equally among the other winners.
In addition to the three features mentioned above, users can also stake SUI to become a validator and participate in securing the network. The current APY for this is around 2%. According to the protocol, over $43 million worth of SUI has been staked on the network.
Highlights of Haedal Protocol
Here are some highlights of Haedal Protocol:
- Award-winning project in the Sui x KuCoin Labs Hackathon: The Sui x KuCoin Labs Hackathon is a competition for projects in the Sui ecosystem, with the goal of finding promising projects. Haedal Protocol won the silver award in this Hackathon.
- 4th ranked TVL in the SUI ecosystem: After nearly a year of development, Haedal Protocol’s TVL has grown significantly, from $16,000 to nearly $200,000,000.
Investors and Partners
Haedal Protocol has not disclosed its fundraising amount or funding rounds. However, the Cetus DEX recently announced an investment in the protocol, establishing a partnership between the two projects.
In addition, Haedal Protocol has also partnered with other projects in the Sui ecosystem, such as the Navi lending & borrowing platform and the Mole farming protocol.
Similar projects
- aPriori: A liquid staking protocol on Monad, using a new structure for liquid staking and MEV (Miner Extractable Value) to help Monad increase decentralization and transaction speed while reducing gas fees.
- Tortuga Finance: A liquid staking protocol on Aptos, allowing users to stake APT tokens (Aptos’ native token) to receive the liquid staking token tAPT.
