> For the complete documentation index, see [llms.txt](https://haedal-protocol.gitbook.io/haedal-protocol-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://haedal-protocol.gitbook.io/haedal-protocol-docs/hmm-liquidity.md). # HMM Liquidity HMM is driven by protocol-owned liquidity initially funded by Haedal itself. Unlike traditional AMM DEX platforms, HMM operates with extremely high capital efficiency, meaning it does not require a large amount of TVL to maintain decent liquidity depth. The main purpose behind HMM’s design is to empower the Haedal ecosystem and further optimize haSUI’s APR. Therefore, at least in the early stages, the running of HMM does not need external LPs to provide large amounts of capital; instead, it will be initialized completely with Haedal’s own liquidity. The initial funds will be seeded by the Haedal team, with profits reinvested continuously to scale the liquidity. In other words, HMM’s profits will be fully owned by the Haedal Protocol, and all distributions will be aligned with the protocol’s best interests. This is manifested as follows: * **haSUI Treasury:** 40% of HMM’s net profits will be periodically harvested and settled in the form of SUI, which will be added to the haSUI treasury, ultimately contributing to the APR amplification of haSUI. * **veHAEDAL Staking Rewards:** 50% of HMM fees will be used for HAEDAL buy back and rewarded to veHAEDAL staking users. * **Haedal Protocol Revenue:** We will take a 10% cut of the HMM fees as Haedal’s protocol revenue, stored in the protocol treasury, to ensure the long-term sustainability of Haedal Protocol. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://haedal-protocol.gitbook.io/haedal-protocol-docs/hmm-liquidity.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.