Haedal ProtocolMicro-cap
Lower risk — well-executed liquid staking but dependent on a young blockchain that has not faced a major stress event
Top Risks
1
Sui network downtime risk (young L1 with limited battle-testing) would freeze all haSUI liquidity and trigger DeFi-wide liquidation cascade when network resumes
2
Concentrated validator set on Sui creates cartelization risk; top 10 validators controlling majority of stake could coordinate to manipulate staking rewards or censor Haedal transactions
3
Low native staking yield (~2.5% APY) compared to competitors (Solana 7-8%, Ethereum 3-4%) limits organic growth; protocol relies on points farming and token incentives to attract TVL
Risk Breakdown
Frequently Asked Questions
Is Haedal Protocol safe to use?
Haedal Protocol receives a B- risk grade (28/100) from Hindenrank, where lower scores indicate lower risk. Lower risk — well-executed liquid staking but dependent on a young blockchain that has not faced a major stress event The dominant liquid staking protocol on Sui, holding over 60% of the chain's staked assets. You deposit SUI and receive haSUI, which earns staking rewards and can be used across Sui DeFi. It manages $200M in deposits. Its B grade reflects solid execution on a young, less-tested blockchain.
What are the main risks of using Haedal Protocol?
The key risks identified for Haedal Protocol are: (1) If the Sui network goes offline (which young blockchains have done), your haSUI is frozen and DeFi positions using it as collateral get mass-liquidated when the network restarts (2) Sui's native staking yield is only 2.5%, well below Solana (7-8%) or Ethereum (3-4%). Haedal subsidizes yields with protocol revenue, which is not sustainable long-term (3) Haedal controls over 60% of Sui's liquid staking market. A bug in Haedal's contracts would cripple the entire Sui DeFi ecosystem
What is Haedal Protocol's risk score breakdown?
Haedal Protocol scores 28/100 across eight risk dimensions: Mechanism Novelty: 2/15, Interaction Severity: 8/20, Oracle Surface: 2/10, Documentation Gaps: 3/10, Track Record: 1/15, Scale Exposure: 3/10, Regulatory Risk: 2/10, Vitality Risk: 7/10. The highest risk area is Vitality Risk at 7/10.
How does Haedal Protocol compare to other Liquid Staking protocols?
Among 81 rated Liquid Staking protocols on Hindenrank, Haedal Protocol ranks #25 by safety (lowest risk score = safest). Its 28/100 risk score and B- grade place it among the safer Liquid Staking protocols.
Has Haedal Protocol ever been hacked or exploited?
Haedal Protocol scores 1/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.
Last scanned 2026-02-26