The Sui ecosystem has emerged as one of the most dynamic players in the decentralized finance (DeFi) space, showing explosive growth throughout 2024 and accelerating further into 2025. According to DeFiLlama data, Sui’s total value locked (TVL) surged past $2 billion in Q1 2025 — a staggering 341% increase from the previous quarter. Alongside rising DEX trading volumes and user engagement, this momentum highlights growing confidence in Sui’s infrastructure and its long-term potential.
With this expansion, demand for SUI token staking has grown exponentially. Yet, many users remain hesitant due to two persistent challenges: balancing liquidity with yield, and relatively low annual percentage rates (APR) compared to networks like Ethereum and Solana.
Enter Haedal, a breakthrough project born from the Sui Liquid Staking Hackathon. By combining innovative protocol design with strategic ecosystem integration, Haedal is reshaping how users interact with Sui staking — delivering high yields, zero fees, and superior capital efficiency.
The Staking Challenge on Sui
Currently, liquid staking tokens (LSTs) across the Sui network average around 2.33% APR, with some validators offering even less after commission deductions. In contrast, leading protocols like Lido on Ethereum offer ~3.1% APR, while Jito on Solana reaches up to 7.85%. For SUI holders, these numbers fail to justify moving assets off centralized exchanges and into on-chain participation.
Moreover, traditional LST models bind tokens to specific validators, often locking users into suboptimal returns. Most validators charge 4%–8% in commissions, further eroding net yields. This structural inefficiency limits both user incentives and ecosystem growth.
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Haedal’s Dual Strategy: Reduce Costs, Maximize Returns
Haedal tackles these limitations head-on through a dual-pronged approach: cost reduction and revenue enhancement.
Dynamic Validator Selection: Optimizing Native APR
Rather than tying haSUI (Haedal’s liquid staking token) to fixed validators, Haedal employs dynamic validator selection. The protocol continuously monitors all active validators on Sui and directs new stakes toward those offering the highest net APR — typically those charging 0%–2% commission.
During unstaking, Haedal intelligently routes withdrawals through lower-performing validators, preserving high-yield positions. This mechanism ensures that haSUI consistently delivers the highest native staking return in the ecosystem.
This optimization alone boosts base APR significantly — but Haedal doesn’t stop there.
Introducing Hae3: A Multi-Layered Yield Engine
To overcome systemic yield ceilings, Haedal launched Hae3, a comprehensive suite of yield-generating products built natively on Sui. At its core are three key components: HMM, haeVault, and haeDAO — each designed to amplify returns while enhancing decentralization and user control.
HMM: Institutional-Grade Market Making for Stakers
Haedal Market Maker (HMM) introduces professional-grade market-making strategies directly into the staking economy. Unlike standard AMMs that rely on pool-based pricing, HMM uses real-time oracle feeds updated every 0.25 seconds, ensuring liquidity aligns with fair market value.
Key features of HMM include:
- Oracle-driven pricing: Eliminates price lag and improves trade execution.
- Automated rebalancing: Captures volatility by dynamically adjusting positions, potentially turning impermanent loss into “impermanent gain.”
- MEV resistance: Built-in protection against sandwich attacks and front-running, preserving trader profits.
After two months of testing, HMM captured 10–15% of DEX trading volume on Sui and contributed an additional 0.92% APR to haSUI holders. As a result, total haSUI APR now stands at a competitive 3.5%, outperforming other LSTs in the ecosystem.
haeVault: Democratizing Professional Liquidity Provisioning
While experienced users may engage in liquidity provision (LP), most retail participants find it too complex or risky. Managing price ranges, monitoring positions, and executing timely rebalances require constant attention — barriers that prevent widespread adoption.
Enter haeVault, Haedal’s automated liquidity management layer. Designed for simplicity and performance, haeVault allows any user to deposit assets with a single click and benefit from advanced LP strategies typically reserved for institutional players.
Core advantages of haeVault:
- One-click participation: No need to choose price ranges or manage positions manually.
- Full automation: Real-time adjustments based on market conditions and key metrics.
- Transparent performance tracking: Users can monitor earnings and portfolio health.
- High-yield capture: Targets returns comparable to professional market makers.
Although currently in development, the upcoming Alpha release aims to onboard substantial TVL quickly. Once live, haeVault is expected to capture significant DEX fee flows from major trading pairs like SUI-USDC — further boosting yield distribution across the Haedal ecosystem.
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haeDAO: Community-Governed Protocol Growth
As HMM and haeVault generate increasing revenue, Haedal has established a sustainable economic model for distributing profits:
- 50% → Boosts haSUI APR for stakers
- 10% → Supports team operations and long-term development
- 40% → Flows into the protocol-owned treasury
This treasury acts as self-sustaining liquidity, reinvested into Haedal’s own products to deepen market presence. Over time, governance will transition to haeDAO, a decentralized autonomous organization launching in Q2 2025.
Through $HAEDAL token locking (into veHAEDAL), community members will gain voting power over:
- Treasury asset allocation
- Cross-protocol liquidity distribution
- Reward multiplier settings in haeVault
- Major product roadmap decisions
This shift empowers users to shape the future of the protocol while aligning incentives across stakeholders.
Security and Ecosystem Integration
Beyond yield innovation, Haedal prioritizes security and interoperability. The protocol uses multi-sig controls and real-time risk monitoring, backed by audits from industry leaders like CertiK and SlowMist. As of March 2025, Haedal has undergone five full audit cycles and processed over $1 billion in transactions — with zero security incidents reported.
Strategic partnerships with top-tier Sui DeFi platforms — including Cetus, Turbos, Navi, Scallop, and Mole — have cemented haSUI as one of the most widely adopted LSTs in the ecosystem. Its deep integration across lending markets, DEXs, and vault strategies creates a flywheel effect that reinforces liquidity and utility.
Frequently Asked Questions (FAQ)
Q: What makes Haedal different from other liquid staking providers?
A: Haedal combines dynamic validator selection with native yield-generating products like HMM and haeVault, enabling higher APRs without relying solely on validator rewards.
Q: Is haSUI safe to use?
A: Yes. Haedal’s contracts have passed multiple audits by top firms like CertiK and SlowMist, and the protocol has maintained a perfect security record since launch.
Q: How does HMM protect against MEV?
A: HMM uses oracle-based pricing instead of pool-dependent quotes, making it inherently resistant to sandwich attacks and frontrunning common in traditional AMMs.
Q: When will haeVault be available?
A: The Alpha version is expected within weeks. Stay tuned via official channels for updates.
Q: Can I participate in governance now?
A: Governance will launch with haeDAO in Q2 2025. Early contributors may receive eligibility for future $HAEDAL airdrops.
Q: Does Haedal charge any fees?
A: No. Haedal operates on a zero-fee model for staking and unstaking, maximizing user returns.
Haedal represents a new paradigm in liquid staking — one where technological innovation meets economic sustainability. By addressing both cost inefficiencies and yield limitations, it sets a new standard for what’s possible within the Sui ecosystem.
As Hae3 rolls out fully in 2025, Haedal is poised to become not just a leader in staking, but a foundational pillar of Sui DeFi.
👉 Explore the future of zero-cost, high-yield staking today.
Core keywords: Sui staking, liquid staking protocol, haSUI APR, Hae3 yield engine, decentralized finance innovation, MEV-resistant DEX, automated liquidity vault