đĄProject introduction
Haedal Protocol is a liquidity staking protocol on the Sui blockchain. It generates haSUI by staking SUI tokens, allowing users to enjoy staking income and the flexibility of DeFi activities at the same time. Its core product Hae3 framework (HMM, haeVault, haeDAO) significantly improves income and user experience through dynamic validator selection and oracle-based market making mechanism. As of March 2025, Haedal TVL reached US$188 million, ranking first in the Sui ecosystem LSD track.
đProduct architecture
Haedal's products are divided into the following core modules:
Dynamic validator selection: real-time monitoring of Sui network validators, selecting the highest APR validator for staking, and the lowest APR validator for unstaking.
HMM (Haedal Market Maker): an oracle-based market making system that provides centralized liquidity, automatic rebalancing, and anti-MEV protection.
haeVault: Automated liquidity management tool, simulates CEX market-making strategy, and provides high-yield LP experience for ordinary users.
haeDAO: Community governance module, manages protocol vaults, and gives HAEDAL token holders voting rights.
âĄïžAnalysis of underlying technical architecture
Dynamic validator selection:
Technical implementation: Real-time acquisition of Sui network validators' APR and commission data through smart contracts, and dynamic allocation of pledged funds. The contract uses Move language (Sui native language) to ensure efficient execution and low Gas fees.
Advantages: Reduce user dependence on a single validator and optimize net APR (current haSUI APR 3.5%).
Challenges: High-frequency monitoring may increase the cost of contract calls, and Gas consumption needs to be optimized.
đąHMM (Haedal Market Maker):
Technical implementation: Integrate multi-source oracles (update prices every 0.25 seconds), combine AMM and CLOB DEX routing systems, and provide centralized liquidity. Anti-MEV design reduces front-running and sandwich attacks through transaction sorting and encryption protection.
Advantages: Capture 10-15% of DEX trading volume, contribute 0.92% additional APR, and significantly increase haSUI's income.
Challenges: Oracles rely on external data sources, and data accuracy and anti-attack capabilities must be ensured.
đĄhaeVault:
Technical implementation: Based on the CLAMM algorithm, automatically adjust the liquidity range and optimize the rebalancing strategy through machine learning models. The user interface is simple, supporting one-click deposits and transparent profit and loss display.
Advantages: The net yield of 938% (SUI-USDC trading pair) far exceeds Cetus's 250.8%, lowering the threshold for ordinary users to participate in LP.
Challenges: Ultra-narrow range strategies may increase the risk of impermanent loss under extreme market fluctuations.
đ”haeDAO:
Technical implementation: Based on Sui's governance contract framework, HAEDAL tokens can be locked as veHAEDAL and given voting rights. Treasury fund allocation is executed through on-chain proposals and voting.
Advantages: Enhance community participation and encourage long-term holding.
Challenge: DAO governance needs to balance efficiency and decentralization to avoid low participation rate.
đ·ïžCore advantages and highlights
Revenue optimization: Dynamic validators and HMM jointly increase haSUI APR to 3.5%, and haeVault provides ultra-high LP returns (938%).
Security: Through five rounds of audits such as Certik and SlowMist, it has processed more than $1 billion in asset transfers with zero security incidents.
Ecological synergy: Deeply integrated with top DeFi projects such as Cetus, Turbos, and Navi, haSUI has become the most active LST asset in the Sui ecosystem.
User-friendly: haeVault simplifies the LP process and is suitable for ordinary users; flexible redemption mechanism (regular 2-4 days zero handling fee, emergency 0.02% handling fee) improves the experience.
đ°Barriers and optimization directions
Current barriers:
Technical barriers: The Hae3 framework (dynamic validators, HMM, haeVault) is unique in the Sui ecosystem and is difficult to replicate in the short term.
Ecosystem barriers: Cooperation with leading DeFi projects and support from the Sui Foundation form network effects.
Data barriers: $188 million TVL and 794,000 holders establish a leading position in the market.
đAreas to be optimized:
Oracle dependency: HMM relies on external oracles, and decentralized oracles (such as Chainlink) need to be introduced to reduce the risk of single point failure.
Gas cost: High-frequency validator monitoring and liquidity adjustments may increase Gas fees, and contract logic needs to be optimized.
Market volatility risk: haeVault's ultra-narrow range strategy may lead to impermanent losses under extreme market conditions, and a dynamic risk management mechanism needs to be introduced.
Solution:
Oracle optimization: Integrate multi-source decentralized oracles to enhance data reliability.
Gas optimization: Take advantage of Sui's high throughput characteristics to optimize the frequency of contract calls and reduce costs.
Risk management: Introduce a dynamic interval adjustment algorithm for haeVault to automatically expand or shrink the liquidity interval according to market fluctuations.
â Summary and analysis
Haedal Protocol's technical architecture is centered on innovation. It effectively solves the problem of low staking returns in the Sui ecosystem through dynamic validator selection and the Hae3 framework. Its high returns, user-friendliness and security make it stand out in the LSD track. However, oracle dependence and Gas cost optimization remain key technical challenges. In the future, Haedal can further consolidate its technological advantages by introducing decentralized oracles and dynamic risk management. For the crypto industry, Haedal's product matrix provides a replicable paradigm for liquidity staking, and its ecological closed loop (staking, market making, governance) will promote the development of the Sui ecosystem and even the entire DeFi.
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