Author: TechFlow
In 2024, the DeFi track of the Sui ecosystem has already shown a remarkable growth trend. In 2025, this momentum continues to strengthen.
According to defillama data, in the first quarter of 2025, the Sui ecosystem's TVL broke through the $2 billion mark, achieving a leap of 341% compared to the beginning of the fourth quarter of last year. The DEX trading volume within the ecosystem continues to rise, and user activity has repeatedly reached new highs. Behind these impressive data points not only confirms the market's confidence in the Sui network but also signals that the Sui ecosystem will usher in a new round of explosion in 2025.
As the ecosystem takes off, the richness of ecosystem applications and user base are expanding simultaneously, and the demand for SUI token staking is showing exponential growth.
However, Sui ecosystem users are still conflicted about staking: first, how to balance liquidity and staking returns, and secondly, compared to ETH and SOL, the current staking annual percentage yield of Sui is relatively low.
These unavoidable issues in Sui DeFi became an excellent breakthrough point in the eyes of the Haedal team.
As the winner of the Sui Liquid Staking Hackathon, Haedal redefined staking with its innovative liquid staking solution. After launching, the project quickly gained market recognition, with its TVL breaking through $188 million. Behind this achievement is Haedal's deep thinking in product design and technological innovation.
Trading is always the purest and most classic profit-making model in the market. Haedal clearly understands this well. Through the Haedal Market Maker (HMM) system, Haedal can open up new revenue sources for staking users while ensuring basic staking returns. HMM has three core functions: 1. **Providing concentrated liquidity based on oracle pricing**: Unlike other DEXs that determine prices based on pool status, HMM's price is always based on oracle pricing. The oracle provides price updates at high frequency (every 0.25 seconds), ensuring that liquidity in the aggregator always remains consistent with the "fair market price". 2. **Automatic rebalancing and market making**: HMM's liquidity will automatically rebalance based on asset status, potentially transforming Impermanent Loss into "Impermanent Gain" by capturing market fluctuations through a "buy low, sell high" strategy. 3. **Anti-MEV**: HMM can naturally defend against MEV attacks, ensuring that trading profits are not eroded by front-running or sandwich attacks. After two months of testing, HMM has captured approximately 10-15% of total DEX trading volume, with haSUI APR steadily growing to a stable 3.5%, far exceeding other LSTs on Sui. Among this, HMM contributed an additional 0.92% APR to haSUI. 1. **haeVault: Enabling ordinary users to access professional market-making returns** In addition to extracting value from each link, Haedal provides an additional revenue path for ordinary users: **professional on-chain LP**. Liquidity providers (LPs) are familiar to users experienced with on-chain operations. Adding liquidity to popular trading pairs is a basic operation for on-chain power users. However, for most ordinary users, becoming an LP has a high threshold. In the most commonly used CLAMM algorithm on Sui, if a user wants to provide liquidity for the SUI-USDC pool, they need to handle several complex matters: - **Determine price range**: Users must make subjective judgments about the price range. - **Adjust liquidity**: Dynamically adjust liquidity based on the set price range. - **Monitor position status**: Continuously monitor whether their liquidity is "out of range". - **Decide on rebalancing**: Determine whether the position needs rebalancing. This entire process is neither natural nor efficient. Potential unexpected situations like Impermanent Loss discourage many from investing significant funds or cause them to provide liquidity only in very conservative price ranges, naturally failing to capture the maximum LP returns. For reference, the average APR for the SUI-USDC pool on Sui is around 150%, while full-range or very wide-range liquidity providers might only obtain 10-20% APR. Some users are even more focused on minimizing Impermanent Loss risk, thus preferring lending or staking, which typically offer single-digit APRs. Professional on-chain LPs simulate CEX market-making strategies, usually providing liquidity in extremely narrow ranges and earning significantly higher returns through self-built monitoring robots and programs that execute rebalancing and fund hedging operations. **haeVault** offers a method that **allows ordinary users to easily participate in liquidity provision and enjoy strategies similar to professional market makers' returns**. **haeVault** builds an automated liquidity management layer on top of AMM DEX. It can automatically adjust liquidity based on token price fluctuations and rebalance positions based on key indicators. haeVault designs professional strategies for DEX LP users similar to CEX market makers. The difference is that CEX market makers profit through "buy low, sell high", while haeVault continuously earns from trading fee income generated by its active liquidity on DEX. **haeVault's core functions:** 1. **Easy operation**: Users only need to deposit any asset with one click to participate. 2. **Transparency**: Users can clearly view their profits and losses. 3. **Full automation**: Users need no operations other than deposits and withdrawals. 4. **High returns**: Leveraging professional strategies, users will obtain more competitive returns compared to other LPs. Unlike HMM, haeVault will be directly open to all users, naturally designed to attract substantial funds. Once haeVault accumulates sufficient TVL, it has the potential to capture a large portion of transaction fees for mainstream assets on DEX. Currently, Haedal plans to launch the Alpha version of **haeVault** in the coming weeks. 1. **haeDAO: Community and Protocol Self-Controlled Liquidity** With the continuous growth of TVL for HMM and haeVault, it's foreseeable that the Hae3 system will capture a large amount of transaction fee income in the Sui ecosystem. **Regarding revenue distribution, Hae3 also has plans:** - **50%**: Used to enhance Haedal LSTs' APR. - **10%**: Allocated to the team to ensure the protocol's long-term sustainability. - **40%**: Allocated to the Haedal treasury as protocol-owned liquidity. Initially, treasury funds will be reinvested in Haedal's products to expand liquidity. As products mature, Haedal will introduce **HaeDAO** to manage the treasury and empower the Haedal token and community. The **$HAEDAL token** can be locked to become veHAEDAL (name tentative) to obtain all rights in haeDAO. These rights include: - **Managing the Haedal treasury**: Deciding asset proportions, liquidity allocation between different product modules or protocols, reward distribution methods, etc. - **Enhancing haeVault returns**: Users' weights in haeVault can be increased to enjoy higher APY. - **Proposals and voting**: Some major protocol decisions will be made through DAO voting, such as key product directions and treasury usage. HaeDAO is expected to launch in the second quarter of 2025, becoming the final piece of the Hae3 product portfolio. As the Hae3 economic system grows into a sustainable and continuously expanding treasury, the Haedal ecosystem will achieve long-term sustainable development and growth.
From "Efficiency" to "Ecosystem"
From initially focusing on Liquid Staking products to now building a complete Liquid Staking product matrix including Hae3, Haedal has always been responding to market demands through technological innovation.
With the core product matrix becoming more comprehensive, Haedal will enter a new stage of development. In this stage, how to balance product innovation and user experience, and how to deepen ecosystem cooperation while maintaining technological leadership will be new challenges for the team. The market will continue to pay attention to Haedal's performance in the face of these new challenges.
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