The future of decentralized finance (DeFi) lies in maximizing capital efficiency, enhancing user yields, and building community-driven protocols. At the heart of this evolution is Haedal Hae3, a next-generation liquid staking solution designed specifically for the Sui blockchain. By reimagining how value is extracted from transaction flows, Haedal is not only boosting returns for stakers but also reshaping the landscape of LSD (Liquid Staking Derivatives) and DAO governance.
Why Liquid Staking Matters in Modern DeFi
Liquid Staking Derivatives (LSDs) have become foundational in DeFi ecosystems. They allow users to stake their native tokens—like ETH, SOL, or SUI—for network security while receiving a liquid derivative token (LST) in return. This LST can then be freely used across DeFi applications such as decentralized exchanges (DEXs), lending platforms, and collateralized debt positions (CDPs).
This dual utility unlocks powerful financial strategies: users earn staking rewards while simultaneously generating yield through DeFi composability. Instead of locking assets away, holders can pursue multi-layered income streams—staking yield plus liquidity provision or lending returns.
For any blockchain ecosystem, native token utility and security are paramount. The challenge lies in balancing network decentralization with high capital efficiency. That’s where innovative LSD protocols like Haedal step in.
The State of LSD on Sui: A Market Ripe for Innovation
Despite rapid growth, Sui’s LSD adoption remains underdeveloped compared to Ethereum and Solana. Current LSTs on Sui offer an average APR of just 2.33%, with many validators providing even lower returns after commission fees (typically 4%–8%). In contrast, leading LSDs like Lido (ETH) and Jito (SOL) deliver significantly higher yields—up to 7.85% APR in Jito’s case.
👉 Discover how next-gen staking boosts yield potential on high-performance chains like Sui.
This yield gap discourages users from moving assets off centralized exchanges (CEXs) and into on-chain participation. For Sui to compete globally, it needs higher-yielding, low-risk LSTs integrated deeply into its DeFi ecosystem.
Evolving LSD Strategy: Beyond Simple Staking
To close this gap, LSD protocols must go beyond passive staking. True innovation comes from combining two approaches:
- Cost reduction: Choosing optimal validators with minimal fees.
- Revenue generation: Capturing additional income streams beyond base staking rewards.
While most LSDs focus only on validator selection, Haedal takes a broader view—harnessing value directly from on-chain transaction activity.
Dynamic Validator Selection for Maximum Native Yield
Unlike static LST models tied to specific validators, Haedal uses dynamic validator selection. It continuously monitors all Sui validators and routes deposits to those offering the highest net APR—often those charging 0%–2% commission.
When users unstake, Haedal selects validators with the lowest APR to minimize queue time. This intelligent routing ensures that haSUI, Haedal’s LST, consistently delivers one of the highest native staking yields on Sui.
But there's a ceiling: base protocol emissions alone can’t sustain long-term competitive yields. To break through, Haedal introduces a novel revenue engine—Hae3.
Hae3: Extracting Value from Transaction Flows
Rather than relying on controversial MEV (Maximum Extractable Value), which often harms user experience via front-running and sandwich attacks, Haedal proposes a healthier alternative: capturing value from transaction fees generated by organic trading activity.
As Sui’s DEX volume surges—now outpacing Polygon, Avalanche, and Tron—the network generates substantial fee revenue. Hae3 taps into this growing stream through two core components: HMM (Haedal Market Maker) and haeVault.
4.1 Haedal Market Maker (HMM): Oracle-Powered Liquidity
HMM is an advanced market-making algorithm integrated into DEX aggregators. It leverages real-time oracle pricing (updated every 0.25 seconds) to maintain liquidity aligned with fair market prices.
Key advantages:
- Oracle-based pricing: Avoids price lag seen in traditional AMMs.
- Auto-rebalancing: Actively manages liquidity to potentially turn impermanent loss into “impermanent profit.”
- MEV-resistant: Protects users from predatory trading tactics.
After two months in test mode, HMM captured 10–15% of total DEX volume with only $850K TVL—significantly boosting haSUI’s APR to a stable 3.5%, including a +0.92% boost directly attributable to HMM.
4.2 haeVault: Democratizing Professional Market-Making
One of DeFi’s biggest barriers is the complexity of liquidity provision. Most users avoid becoming LPs due to concerns about impermanent loss, price range selection, and constant monitoring.
Enter haeVault, a fully automated liquidity vault that lets ordinary users earn like professional market makers.
With haeVault:
- Users deposit any asset with one click.
- The system automatically manages price ranges, rebalances positions, and optimizes fee collection.
- Returns are transparent and competitive—far exceeding passive LP strategies.
While SUI-USDC pools may offer ~150% theoretical APR, most retail LPs earn only 10%–20% due to suboptimal strategies. haeVault closes this gap by applying institutional-grade tactics at scale.
👉 See how automated yield strategies are transforming passive income in DeFi.
An Alpha version of haeVault is expected within weeks—opening new doors for mass participation in high-yield DeFi.
4.3 haeDAO: Community-Governed Treasury & Growth
All revenue generated by HMM and haeVault feeds into a sustainable economic loop:
- 50% → Boost LST yields
- 10% → Team funding
- 40% → Protocol-Owned Liquidity (POL) in Haedal Treasury
Initially, treasury funds will be reinvested to deepen liquidity. Over time, control will transition to haeDAO, a decentralized autonomous organization governed by $HAEDAL token holders.
By locking $HAEDAL into veHAEDAL, users gain voting power over:
- Treasury asset allocation
- Liquidity distribution across products
- Reward multipliers in haeVault
- Major protocol upgrades and proposals
Scheduled for launch in Q2, haeDAO completes the Hae3 vision: a self-sustaining ecosystem where users, liquidity, and governance grow together.
Expanding Beyond SUI: The haWAL Initiative
Haedal isn’t limited to SUI. The protocol is preparing to support Walrus, a decentralized storage layer for Web3, by launching haWAL—its liquid staking derivative post-TGE.
Smart contract development is complete; third-party audits are underway. Once live, haWAL will integrate fully into the Hae3 ecosystem, offering enhanced yield opportunities and reinforcing Haedal’s role as a cross-chain DeFi enabler.
Final Thoughts: Building the Future of Yield
Today’s 3.5% APR for haSUI is just the beginning. Inspired by pioneers like Jito—who aim to boost staking yields up to 15%—Haedal is pushing further by building a holistic yield engine powered by real transaction volume, smart automation, and community ownership.
By focusing on sustainable revenue instead of exploitative MEV practices, Haedal sets a new standard for ethical, high-performance LSD protocols.
Frequently Asked Questions (FAQ)
Q: What is Hae3?
A: Hae3 is Haedal’s suite of yield-enhancing products on Sui, including HMM (market maker), haeVault (automated liquidity), and haeDAO (governance). Together, they extract value from transaction flows to boost LST yields sustainably.
Q: How does haSUI achieve higher APR than other LSTs?
A: Through dynamic validator selection and revenue from HMM and haeVault, which capture trading fees without relying on MEV—resulting in safer, more consistent returns.
Q: Is haeVault safe for beginners?
A: Yes. haeVault handles all complex operations automatically, making professional-grade liquidity provision accessible and low-effort for all users.
Q: What role does the $HAEDAL token play?
A: $HAEDAL enables governance via veHAEDAL locking, giving holders voting rights over treasury management, product incentives, and protocol direction through haeDAO.
Q: When will haeVault launch?
A: The Alpha version is expected within weeks. Follow official channels for updates.
Q: Can I stake other tokens besides SUI with Haedal?
A: Yes—Haedal plans to support Walrus’s token (haWAL) post-TGE, expanding its multi-asset liquid staking capabilities.
👉 Start exploring high-yield staking opportunities on cutting-edge Layer 1 blockchains today.