What is Haedal Protocol?
Haedal Protocol is a liquidity staking protocol based on the Sui blockchain, aimed at solving the liquidity limitations of traditional staking through innovative liquidity staking derivatives (LSDFi), providing efficient and secure DeFi solutions for users and developers. Its core products include haSUI and haWAL (liquidity staking tokens), veHAEDAL (governance and incentive mechanism), haeVault (high-yield liquidity pool), and Haedal Random Vault (staking lottery mechanism). Through these tools, Haedal Protocol allows users to stake SUI or WAL to earn consensus rewards while maintaining asset liquidity and achieving seamless DeFi applications within the Sui ecosystem.
Haedal's mission is to become the core infrastructure for liquidity in the Sui ecosystem, promoting the next phase of development for DeFi and LSDFi through decentralized technology and transparent mechanisms.
Core Functions of Haedal
The functions of Haedal Protocol revolve around liquidity staking, governance, and ecological incentives, with key highlights including:
Liquidity Staking (haSUI & haWAL):
Users receive haSUI or haWAL tokens representing their share in the staking pool by staking SUI or WAL through Haedal, which can be used directly in DeFi protocols within the Sui ecosystem (such as Cetus' liquidity pool, Navi's lending).
Yield Mechanism: The value of haToken appreciates as the validator rewards in the staking pool accumulate.
Whole-chain circulation: haSUI retains the native functionality of SUI, supporting seamless trading, lending, or providing liquidity within the Sui ecosystem.
Flexible Unstaking:
Regular Unstaking: haSUI (1-2 epochs, about 2-4 weeks, free), haWAL (2 epochs, free).
Instant Unstaking: Based on the Sui SIP33 protocol, it offers instant redemption with a fee of only 0.02% of the unstaking amount, meeting high liquidity demands.
Governance and Incentives (veHAEDAL):
Users lock HAEDAL tokens (1-52 weeks) to obtain veHAEDAL for protocol governance and reward distribution. The longer the lock-up period, the higher the initial veHAEDAL.
High-Yield Liquidity Pool (haeVault):
Provides a liquidity pool for idle funds with high annualized returns through ultra-narrow rebalancing strategies, simplifying user operations.
Compared to platforms like Cetus, haeVault offers more competitive yields, attracting liquidity providers.
Innovative Incentives (Haedal Random Vault):
Users stake SUI to participate in weekly lotteries; the more they stake and the earlier they stake, the higher the chances of winning.
Gamified mechanisms enhance user participation and provide additional earning opportunities for stakers.
Security and Transparency:
Adopts a non-custodial design, with funds managed by smart contracts, combining the security of the Move language on the Sui blockchain to reduce the risk of contract vulnerabilities.
All staking, unstaking, and reward distribution data are on-chain and publicly verifiable, suitable for DAO and DeFi scenarios.
Key Nodes of Haedal
Haedal Protocol has been steadily advancing since its launch. Here are its key development milestones (some information is speculative based on existing data and should be verified against official announcements):
2023: The Haedal Protocol team was formed, with core members including blockchain experts like Luke Shi. The project prototype was born, focusing on liquidity staking in the Sui ecosystem.
2024:
Completed seed round financing, receiving support from institutions such as Hashed, OKX Ventures, Animoca Brands, Sui, and Comma3 Ventures, with the amount undisclosed.
Launched haSUI and haWAL, officially supporting liquidity staking for SUI and WAL, quickly integrating into DeFi protocols in the Sui ecosystem (such as Cetus, Navi).
Launch veHAEDAL governance mechanism to attract community users to participate in protocol governance.
2025 (Ongoing):
haeVault launched, enhancing TVL through a high-yield liquidity pool, increasing the utility of haSUI/haWAL.
Haedal Random Vault launched, introducing a gamified lottery mechanism that significantly enhances user engagement.
Plans to collaborate with more Sui ecosystem projects to optimize haeVault strategies and explore cross-chain functionalities.
The Future of Haedal
Haedal Protocol will focus on the Sui ecosystem and expand Web3 application scenarios in the future:
Product Upgrades: Optimize the yield strategies of haeVault and launch more DeFi integrations (such as collaborations with lending and derivatives protocols), expanding the application scenarios for haSUI/haWAL.
Governance and Community: Plans to launch veHAEDAL governance DAO in Q2 2025, enhancing community autonomy and attracting more users to participate in protocol decision-making.
Cross-Chain Expansion: Exploring the liquidity of haSUI/haWAL on other high-performance chains (such as Aptos, Solana) through partnerships with cross-chain bridges (such as Wormhole or LayerZero).
Innovative Features: Plans to launch AI-driven staking optimization tools, combined with the gamified mechanism of Random Vault, further enhancing user experience.
Commercialization: Building diversified revenue sources through protocol fees (6%), haeVault revenue sharing, and potential enterprise custom services, moving away from a single profit model.
Challenges:
The user base for DeFi in the Sui ecosystem is still small, and Haedal needs to continuously expand the application scenarios for haSUI/haWAL to attract users.
Web3 liquidity staking is relatively unfamiliar to traditional financial users, leading to high market education costs.
Cross-chain functionality has not been fully realized and must address technical complexity and security risks.
Summary
Haedal Protocol is a pioneer in liquidity staking within the Sui ecosystem. Its haSUI/haWAL, veHAEDAL, haeVault, and Random Vault provide a set of hardcore and practical solutions to address the challenges of staking liquidity limitations, incentive sustainability, and ecological integration. Starting from 2023 and rapidly growing until 2025, Haedal has become a key infrastructure for Sui DeFi, leveraging technological innovations (modular architecture, high-performance support from Sui) and endorsements from top institutions (such as Hashed, OKX Ventures).
Haedal acts like a bridge, connecting capital efficiency on the Sui chain with DeFi innovation. In the future, it is expected to become a standard for Web3 liquidity staking through cross-chain expansion and community governance, opening a new chapter of efficient and transparent DeFi for users and project parties.