What is haSUI?

haSUI represents your staked SUI in Haedal's staking pool. Here's what that means and how it unlocks your liquidity.

What is haSUI?

haSUI is a liquid staking token that you receive when you stake SUI on the Haedal Protocol. These haSUI tokens represent your staked SUI token in Haedal's staking pool.

These tokens essentially serve as receipts, providing you with the ability to redeem them in the future for your staked SUI along with any accrued rewards. In the meantime, haSUI offers the advantage of being usable within the realm of DeFi, all the while appreciating value relative to the price of your SUI.

haSUI is what's known as a rewards-accruing liquid staking token. This means that following each SUI epoch, its valuation undergoes a recalculation based on the staking rewards earned through the Haedal Staking Pool. The calculation of haSUI's price is as follows:

Price of haSUI = total_staked / tokens_minted

As the protocol cannot mint new haSUI without SUI being exchanged for them, only the total staked amount is going up (for any new haSUI minted, the same amount of SUI, at the current price of haSUI, has to be staked and also joins the total staked amount).

This means that the price of haSUI is going up each epoch relative to SUI as long as staking rewards are distributed for the SUI staked in the protocol. If you keep haSUI for a year, its value against SUI will have gained 5%.

What can I do with haSUI?

haSUI tokens will have several use cases in the SUI ecosystem. Users will be able to access all the DeFi protocols with haSUI while earning stable staking rewards.

Here are some examples:

• Liquidity Provision: Haedal has created liquidity pools such as haSUI/SUI on dex for users to provide liquidity to earn staking and liquidity rewards as well as avoid impermanent loss.

• Trading on DEX: It will also be available on decentralized exchanges to users to trade for other crypto tokens on-chain.

• Borrowing/Lending: haSUI can be used as collateral or borrowed on many lending protocols on Sui

• Collateralized Debt Position (CDP): Used as collateral to mint stablecoin therefore unlocking the liquidity on-chain