Haedal Protocol is a Liquid Staking protocol built on the Sui blockchain, allowing users to Stake SUI to receive the haSUI token. So what is the Haedal Protocol? What are the highlights of the project to lead the TVL in the Sui ecosystem? Let's explore this project in more detail through the article below!
1. What is Haedal Protocol?
Haedal Protocol is a Liquid Staking protocol, where users can Stake SUI to receive haSUI - a token representing the amount of SUI staked. The unique feature of haSUI is that its value gradually increases over time due to Staking rewards. This helps users not only maintain liquidity but also optimize the profits from their assets.
To learn more about the project, please read the articles below:
According to statistics from Defillama, Haedal Protocol is currently the Liquid Staking protocol with the highest Total Value Locked (TVL) on the SUI network, reaching nearly $200 million.
Haedal Protocol TVL. Source: Defilama
2. How Haedal Protocol Works
The mechanism of Haedal Protocol is very simple and effective:
- Stake SUI: Users deposit SUI into the Haedal Protocol.
- Receive haSUI: After Staking, users receive haSUI - a token representing the amount of SUI staked.
- Increase haSUI Value: The value of haSUI gradually increases over time due to the accumulated Staking rewards.
3. haSUI Valuation Formula
The value of haSUI is calculated using the formula:
haSUI Price = Total Staked SUI / Total haSUI Issued
After each epoch, the value of haSUI will automatically increase due to Staking rewards. If users hold haSUI for a year, its value can increase by about 5% compared to SUI.
4. Key Features of Haedal Protocol
4.1. Staking
This is the core feature of Haedal Protocol. Users can Stake SUI to receive haSUI. The protocol offers two Staking modes:
- Automated: Fast Staking with just a click.
- Manual: Users can choose their own validators to Stake, suitable for those who want to optimize their profits.
4.2. Withdrawal
Users have two ways to withdraw funds:
- Unstake: Withdraw SUI after the unstaking request is processed.
- Swap haSUI: Instantly exchange haSUI for SUI through DEX platforms like Cetus.
4.3. DeFi
Haedal Protocol allows users to use haSUI in DeFi activities such as:
- Provide Liquidity: Participate in the haSUI/SUI Liquidity pool on the Cetus DEX to earn additional profits.
- Borrow/Lend: Use haSUI as collateral or borrow other tokens.
- Trade on DEX: Trade haSUI on decentralized exchanges.
4.4. Vault
The Vault feature allows users to deposit SUI to participate in a lucky draw program. Weekly, the system will randomly select users to reward haSUI. This is an interesting way to encourage user participation in Staking.
5. Highlights and Limitations of Haedal Protocol
5.1. Highlights
- Asset Value Appreciation: haSUI is a yield-bearing token, helping users receive accumulated interest over time.
- Strategic Partnerships: Haedal Protocol has collaborated with major projects in the Sui ecosystem, such as Cetus (DEX), Navi (lending & borrowing), and Mole (farming).
- Airdrop Opportunities when the project launches its token (the team will have a separate article to guide you on how to farm this airdrop early, the project is currently collaborating with OKX exchange to airdrop to users)
5.2. Current Limitations
Although Haedal Protocol has great potential, the project is still in the development stage. Some current limitations include:
- Lack of tokenomics information: Currently, Haedal Protocol has not disclosed information about its own token, but in return, it is highly likely that the project will soon airdrop to users in the near future.
- Limited application: haSUI is currently only used in some DeFi protocols, and there are not many diverse use cases.
6. Project's Social Channels
7. Conclusion
Haedal Protocol is a promising liquid staking solution on the SUI network, allowing users to receive staking rewards while maintaining liquidity to participate in DeFi. With the highest TVL in the liquid staking segment on SUI, Haedal Protocol is gradually establishing its position in this blockchain ecosystem.
The article above is a summary of all the information about the Haedal Protocol project that the HMC Insights team has researched. Don't forget to follow HMC Insights on social media platforms to stay updated with the latest quality analyses. Thank you all for accompanying the team!
