Why does the Lending Vault need a buffer pool?
With Haedal's SUI and haSUI vaults, some funds can be allocated to the haSUI-SUI pool of the Cetus Vault. Instead of simply waiting, these funds serve as a liquidity buffer while pursuing staking rewards and trading fee income. The core strategy still involves distributing assets across multiple lending markets.
From an operational perspective, the buffer pool is a mechanism that increases flexibility in moving funds. However, it should not be viewed as risk-free cash. You must consider the pool’s weight, the price relationship between haSUI-SUI, the available liquidity, and the trading fee revenue.
Therefore, it’s important not to compare only the displayed APY, but to observe how the lending positions and the buffer pool’s allocation ratio change. As the structure becomes more complex, not only do revenue sources increase, but so do risk sources.
The Haedal Lending Vault is a BETA product. Diversification reduces concentration on a single platform, but it does not eliminate the possibility of losses.
#Haedal @HaedalProtocol
With Haedal's SUI and haSUI vaults, some funds can be allocated to the haSUI-SUI pool of the Cetus Vault. Instead of simply waiting, these funds serve as a liquidity buffer while pursuing staking rewards and trading fee income. The core strategy still involves distributing assets across multiple lending markets.
From an operational perspective, the buffer pool is a mechanism that increases flexibility in moving funds. However, it should not be viewed as risk-free cash. You must consider the pool’s weight, the price relationship between haSUI-SUI, the available liquidity, and the trading fee revenue.
Therefore, it’s important not to compare only the displayed APY, but to observe how the lending positions and the buffer pool’s allocation ratio change. As the structure becomes more complex, not only do revenue sources increase, but so do risk sources.
The Haedal Lending Vault is a BETA product. Diversification reduces concentration on a single platform, but it does not eliminate the possibility of losses.
#Haedal @HaedalProtocol
