Three Flows of How Haedal Protocol Works

Built on the Sui blockchain, Haedal offers a liquid staking solution that lets you earn rewards while still maintaining the freedom to use your assets across DeFi platforms. 

This article will explain how Haedal works, its key features, how to use the HAEDAL token, and what makes its staking system more flexible than traditional methods. Check out the full review!

What is Haedal Protocol and How Does It Work?

Haedal Protocol is a liquid staking platform created specifically for the Sui blockchain. It allows users to stake their SUI tokens and receive haSUI tokens in return. These haSUI tokens serve as proof of your staked SUI and the rewards it accrues over time.

Here’s how Haedal works, step-by-step:

1. Stake SUI Tokens: Users begin by staking their SUI tokens directly on the Haedal platform through a secure smart contract.

2. Receive haSUI Tokens: In return, users receive haSUI — a liquid version of their staked SUI. This token increases in value over time as staking rewards are earned.

3. Access DeFi Ecosystem: With haSUI, users can take part in various DeFi applications within the Sui network. You can lend, borrow, trade, or participate in liquidity pools — all without needing to unstake your SUI.

This model ensures that your assets remain productive. Even while staked, they can be put to use across different platforms, giving you both reward generation and liquidity.

Read also: Introduction to XIL Token from Project X – What It Is and How to Earn

What is HAEDAL Token?

The HAEDAL token is the official governance and utility token of the Haedal Protocol. While haSUI reflects your staked assets, HAEDAL is used to support decision-making, boost yields, and integrate with other modules in the Haedal ecosystem.

Holding HAEDAL allows users to take part in the governance of the protocol and benefit from enhanced yield mechanisms within Haedal’s broader framework.

Key Features and Utilities

The Haedal Protocol offers several features that are designed to make staking more flexible, rewarding, and user-friendly:

1. Governance and Voting

HAEDAL holders can lock their tokens into veTokens, which provide voting power in HaeDAO, Haedal’s decentralized autonomous organization. This lets the community help shape the future of the protocol.

2. Yield Optimization

By locking HAEDAL, users can boost the annual returns of the staking pool. This system aligns long-term incentives and encourages participation in protocol growth.

3. Seamless DeFi Integration

haSUI tokens can be used in various DeFi platforms built on Sui, including decentralized exchanges (DEXes), lending platforms, and other protocols. The flexibility of haSUI allows users to earn more without unstaking.

4. Liquidity and Accessibility

Unlike traditional staking, where funds are locked, Haedal allows users to keep their assets liquid. The interface is also designed to be intuitive, making it suitable for beginners in crypto.

5. Support for Multiple Assets

Haedal not only supports staking for SUI but also for WAL tokens, providing haWAL as the liquid staking equivalent. This broadens the platform’s use across the Sui ecosystem.

Read also: What Is Xircus Web3 App – Bring Your Web3 Ideas to Life Easily

Tokenomics and Allocation

Haedal’s token distribution has been designed to support long-term growth, adoption, and sustainability. Here’s how the 1 billion HAEDAL tokens are allocated:

Key Details:

• Token Name: Haedal Protocol
• Ticker: HAEDAL
• Total Supply: 1,000,000,000 HAEDAL
• Sui Address: 0x3a30...62ea::haedal::HAEDAL

This balanced distribution ensures that there are strong incentives for community growth, ecosystem development, and team commitment.

Conclusion

The Haedal Protocol introduces a more flexible and modern approach to staking on the Sui blockchain. By issuing haSUI tokens in exchange for staked SUI, it allows users to earn passive income without losing the ability to participate in other DeFi opportunities. 

The addition of the HAEDAL token brings governance, improved yields, and deeper integration across the ecosystem. With its clear structure and thoughtful tokenomics, Haedal presents a promising solution for users who want more control and liquidity from their staked assets. 

As DeFi evolves, platforms like Haedal are leading the way in making staking more accessible, practical, and user-centered.

FAQ

1. Why Choose Haedal?

Haedal stands out in the Sui ecosystem for its user-centric design and commitment to maximizing capital efficiency. By enabling liquid staking, it removes the traditional barriers of staking lockups and opens up new possibilities for users to grow their assets.

2. What is liquid staking and how does Haedal implement it?

Liquid staking allows users to stake tokens while receiving a liquid derivative token (haSUI or haWAL) that can be used in DeFi activities. Haedal’s protocol combines staking rewards with algorithmic DeFi yield strategies, maximizing capital efficiency and user flexibility.

3. What are haSUI and haWAL tokens?

They are liquid staking tokens issued by Haedal when users stake SUI or WAL tokens. These tokens represent staked assets plus accrued rewards and can be used in DeFi protocols, providing liquidity while earning staking yields.

4. What is haToken?

haToken stands for Haedal staked token, it is minted when you stake SUI or WAL via Haedal's liquid staking infra.This is a yield bearing token which represents your ownership and share of the corresponding total liquid staking value on Haedal. 

5. Where can I use haToken?

haToken will be deeply integrated throughout the Sui ecosystem. It can be used in various DeFi protocols and applications such as DEXes, lending protocols, CDP protocols, options trading platforms, etc. The goal of Haedal is to make haSUI and haWAL capable of doing anything that SUI and WAL can do.