What Is the Haedal Protocol (HAEDAL)?

Haedal on Sui: Liquid staking and HMM

Haedal is a liquid staking protocol built for the Sui blockchain. It lets users stake SUI and receive a tradable liquid staking token, enabling participation in DeFi while still earning validator rewards. The protocol's integrated market maker, the Haedal Market Maker (HMM), aims to improve liquidity and capital efficiency for haSUI holders — making Haedal a key utility in the Sui DeFi landscape.

How Staking Works: From SUI to haSUI

When users stake SUI with Haedal they are issued haSUI, a yield-bearing liquid staking token that represents the staked asset and automatically accumulates staking rewards. This approach preserves the economic benefits of staking while freeing users to deploy that value across DeFi applications.

Two Staking Options to Match Your Strategy

• Automated staking: The protocol selects and balances validators for a simple, one-click experience.
• Manual staking: Power users pick specific validators and optimize for APY and risk preferences.

What You Can Do with haSUI

haSUI is meant to be composable within the Sui ecosystem. Common uses include:

• Trading and providing liquidity on decentralized exchanges.
• Using haSUI as collateral in lending markets.
• Purchasing or trading NFTs.
• Participating in stablecoin and other yield strategies.

These options let holders earn staking rewards while staying active in yield-generating activities.

What Is the Haedal Market Maker (HMM)?

The HMM is an automated market maker tailored to support haSUI and related pairs on Sui. Rather than relying mainly on external liquidity providers, HMM uses protocol-owned liquidity to ensure tighter spreads, more reliable trading depth, and yield enhancement for haSUI holders.

Fee Structure and Protocol Performance

HMM charges a 0.04% trading fee. Half of those fees are allocated to incentives that help boost haSUI yields. As of May 2025, HMM had recorded over $900 million in cumulative trading volume and maintained roughly $1 million in total value locked, ranking it among the more active AMM venues on Sui by daily volume.

Core Features for Better Trade Execution

1. Dynamic liquidity concentration: The HMM focuses its liquidity within the most active trading ranges. This minimizes slippage for traders and makes capital work more efficiently than in traditional AMM pools.
2. Oracle-aligned pricing: High-frequency price feeds keep pool pricing in step with external markets, helping to limit impermanent loss and, in some scenarios, enabling profitable rebalancing from price movements. 
3. Inventory management: If the pool becomes imbalanced (e.g., too much SUI and not enough haSUI), the HMM automatically adjusts its pricing to incentivize trades that restore the balance.

How Haedal Manages Risk and Efficiency

HMM takes advantage of Sui's high transaction throughput to rebalance liquidity quickly during volatile markets. The design also reduces common on-chain attack vectors like sandwich-style front-running, helping preserve returns for liquidity recipients and traders.

How Protocol Revenue Is Used

The initial liquidity for the HMM is sourced from the protocol's own treasury. Profits generated are reinvested to grow the protocol and reward users:

• 40% to the haSUI treasury in SUI to boost haSUI APR.
• 50% used for HAEDAL token buybacks and distributed to veHAEDAL stakers.
• 10% retained by the protocol treasury for long-term development.

The HAEDAL and veHAEDAL Tokens

The native token, HAEDAL, has a capped supply of 1 billion and follows a multi-year issuance schedule. Holders can lock HAEDAL to receive veHAEDAL — a vote-escrowed token that increases with longer lockups (from one week up to 52 weeks).

Benefits of locking include weekly reward distributions, boosted yields in farming modules, and voting power in protocol governance.

Notable Distribution Event

In May 2025 a distribution allocated 30 million HAEDAL tokens (about 3% of the total supply) to eligible users through a platform airdrop. Following distribution, the token began trading against major stablecoins and common trading pairs.

Practical Takeaways for Users

• Stake without losing liquidity: haSUI unlocks access to DeFi while continuing to accrue validator rewards.
• Compound returns: Using haSUI across DEXs, lending, and farms can increase capital efficiency.
• Market quality via HMM: Protocol-owned liquidity and dynamic concentration aim to reduce slippage and improve execution.
• Governance alignment: The HAEDAL/veHAEDAL model ties long-term holders into governance and reward flows.

Summary

Haedal combines liquid staking and an integrated market maker to let SUI stakers stay active in DeFi while still earning yield. With haSUI acting as a composable staking token and HMM providing specialized liquidity, the protocol targets improved capital efficiency and a more usable staking experience on Sui.