The decentralized finance (DeFi) landscape is evolving rapidly, and one project emerging as a standout in the Sui ecosystem is Haedal Protocol. With innovative architecture, strong performance metrics, and deep integration into Sui’s growing DeFi infrastructure, Haedal is positioned to lead the liquid staking derivative (LSD) sector on this high-performance blockchain.
As of mid-April 2025, Haedal has achieved a total value locked (TVL) of $117.36 million, outpacing major competitors like Volo and rivaling even the largest DeFi protocols in the ecosystem. Its native staked asset, haSUI, is gaining traction not just for its yield potential but also for its role in a broader, synergistic DeFi framework.
This article explores why Haedal stands out in Sui’s nascent liquid staking market and how its unique technology stack drives superior returns and user engagement.
The Untapped Potential of Sui’s Liquid Staking Market
Despite Sui’s rapid growth, the adoption of liquid staking remains low. Only 2% of the $307.48 million worth of staked SUI has liquidity—far behind Solana (10.1%) and Ethereum (30.5%). This gap represents a massive opportunity.
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With such low liquidity penetration, any protocol that can enhance yield efficiency and usability stands to capture significant market share. That’s where Haedal comes in.
The current average staking APY on Sui hovers around 2.5%, which pales in comparison to Solana’s 7–8% or Ethereum’s 3–4%. Without incentives or yield-boosting mechanisms, passive staking offers little appeal. Haedal addresses this challenge head-on through its proprietary Hae3 framework, composed of three core components: HMM (Haedal Market Maker), HaeVault, and HaeDAO.
These modules work together to optimize yield, improve capital efficiency, and empower governance—creating a flywheel effect that strengthens network effects across Sui DeFi.
Hae3 Framework: The Engine Behind Haedal’s Performance
HMM: Smart Liquidity Provision with Real-Time Optimization
At the heart of Haedal’s success is HMM, an automated market maker powered by real-time oracle data and dynamic pricing algorithms. Unlike traditional DEX pools that rely on static price feeds, HMM continuously adjusts liquidity based on market conditions, minimizing impermanent loss while capturing arbitrage opportunities.
From February to March 2025, HMM processed over $284 million in trading volume**, up from $59 million—a staggering 380% increase. During this period, it generated $236,000 in fees**, with an average TVL of just $800,000—indicating exceptional capital efficiency.
By redirecting 50% of fee revenue back into haSUI staking rewards, Haedal boosted the effective APY from 2.58% to 3.21%, making it one of the most competitive yields in the Sui ecosystem.
Cetus Protocol, Sui’s largest DEX by volume ($92 million daily), dominates trading activity. Yet Haedal has already captured 6.12% of Cetus’ daily volume since launching on January 6, 2025—suggesting strong organic demand and growing liquidity dominance.
HaeVault: Supercharging Yield Through Precision Strategies
For users seeking higher returns, HaeVault offers an advanced solution. It simplifies liquidity provision by automating position management and deploying ultra-narrow rebalancing strategies—similar to concentrated liquidity models seen on Uniswap v3 but optimized for Sui’s speed and low fees.
Take the SUI-USDC pool as an example:
- On Cetus, standard LPs earn approximately 250.8% APY.
- In contrast, HaeVault achieved an astonishing 1117% gross APY, delivering a net return of 938% after a 16% performance fee.
This dramatic outperformance stems from precise range selection, frequent rebalancing enabled by low transaction costs, and compounding mechanisms that maximize reinvestment speed—all handled seamlessly for users.
HaeDAO: Decentralized Governance with Real Utility
Beyond yield generation, Haedal integrates governance via HaeDAO, allowing $HAEDAL token holders to vote on protocol upgrades, fee structures, and treasury allocations. Locking tokens as veHAEDAL increases voting power and unlocks boosted yields in HaeVault—aligning long-term incentives across stakeholders.
This triple-layer design—market making, yield optimization, and decentralized governance—creates a self-reinforcing ecosystem where each component amplifies the others.
Why Haedal Outperforms Competitors
Protocols like Volo and Suilend focus narrowly on staking or lending but lack the integrated approach that defines Haedal. They don’t capture DEX fees or offer automated vault strategies. As a result, they miss out on secondary revenue streams that significantly enhance net yields.
In contrast, Haedal leverages every layer of the stack:
- It captures trading fees via HMM.
- Boosts staking rewards through revenue sharing.
- Enhances LP yields via algorithmic vaults.
- Empowers users with governance rights.
This holistic model makes Haedal not just a liquid staking protocol, but a comprehensive yield engine deeply embedded within Sui’s $1+ billion DeFi ecosystem.
Strong Fundamentals and Growing Adoption
Haedal’s traction isn’t limited to technical innovation—it’s backed by solid on-chain metrics:
- **TVL: $117.36 million** (surpassing Volo’s $50 million)
- Daily active wallets: Over 44,000
- Token holders: 794,000+
These figures place Haedal at the forefront in terms of user adoption and capital depth. Even compared to Suilend—which holds a similar TVL—Haedal leads in transaction volume, yield performance, and holder count, signaling stronger organic engagement.
The project has also attracted backing from top-tier investors including Hashed, Comma3 Ventures, OKX Ventures, and Animoca Brands—a testament to its long-term potential.
FAQ: Your Questions About Haedal Protocol Answered
Q: What is haSUI?
A: haSUI is Haedal’s liquid staking token. When you stake SUI through Haedal, you receive haSUI in return, which represents your staked balance plus accrued rewards. You can use haSUI across DeFi apps while still earning staking yields.
Q: How does Haedal achieve higher APY than native staking?
A: By recycling 50% of HMM trading fees into staking rewards and optimizing validator selection—choosing high-APR nodes for deposits and low-APR ones for withdrawals—Haedal maintains consistently higher yields than standard staking pools.
Q: Is Haedal secure?
A: Yes. The protocol has undergone multiple audits and operates transparently on-chain. Its smart contracts are open-source, and governance is decentralized through HaeDAO.
Q: Can I provide liquidity without managing positions manually?
A: Absolutely. HaeVault automates everything—from deposit to rebalancing—so you earn premium yields without active oversight.
Q: What role does the $HAEDAL token play?
A: $HAEDAL is used for governance (when locked as veHAEDAL) and boosting vault yields. It may also qualify holders for future ecosystem incentives or airdrops within Sui.
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Final Thoughts: A Prime Candidate for Sui’s LSD Leadership
Haedal Protocol combines cutting-edge technology with real-world performance. With only 2% LSD penetration in Sui, there’s room for 10x growth—and Haedal is best positioned to capture it.
Its dynamic validator selection, fee-recycling model, and high-efficiency vaults deliver tangible advantages over competitors. Backed by strong fundamentals, growing user adoption, and support from leading VCs, Haedal isn’t just another DeFi project—it’s a foundational building block for Sui’s financial future.
As the ecosystem expands and demand for liquid staking rises, protocols like Haedal will become essential infrastructure—offering users flexibility, yield, and utility all in one place.
Whether you're a yield chaser, liquidity provider, or long-term believer in Sui’s scalability promise, Haedal deserves serious attention.
👉 See how Haedal compares to other next-gen liquid staking protocols