Haedal Protocol’s recently launched new feature, Haedal PropAMM, is essentially an additional revenue engine for processing on-chain transaction flow.

Let’s start with a quick overview of Haedal.

It was originally a liquid staking protocol on Sui. Users can stake SUI to receive haSUI, which they can then use in DeFi. Later, Haedal didn’t just do LST—it also started focusing on market making, transaction flow, and protocol revenue.

This time, Haedal PropAMM is an extension of that direction.

PropAMM can be understood as an “AMM market-making engine that the protocol itself operates.” It’s not simply about setting up a pool and waiting for people to trade; instead, through quantitative market-making strategies, it handles on-chain transaction demand more proactively.

In plain terms, when transactions on Sui come in from aggregators or major trading entry points, Haedal PropAMM can take on those flows, help traders complete swaps, and convert the price spread, fees, and market-making profits generated during the process into its own revenue source

This is quite different from Haedal’s original HMM

HMM is more geared toward active market making based on oracle prices, while PropAMM adds another layer of more flexible proprietary strategies. It’s not just dealing with passive liquidity in a single pool—it’s more like, “where there’s real trading demand, the protocol uses strategy to capture it”

What I find interesting about this update is that it pushes Haedal one step further from being merely a liquidity staking protocol toward a “capital efficiency layer on Sui”

Previously, when we looked at Haedal, we would first consider haSUI, staking rewards, and the use cases of LSTs in DeFi. Now that PropAMM is added, we need to start looking at another question: can Haedal turn real trading volume on Sui into long-term, sustainable protocol revenue

But beginners also need to be careful: PropAMM sounds impressive, but that doesn’t mean users or token holders will necessarily make money

Market-making strategies are affected by market volatility, routing flow, trading depth, strategy parameters, and extreme market conditions. The larger the trading flow, the more opportunities there are—but the risk isn’t zero. Especially for proprietary strategies, they inherently depend more on the team’s risk control capabilities and execution quality

So this update is best understood like this: Haedal PropAMM isn’t just a product upgrade—it’s Haedal’s attempt to turn “trading activity on Sui” into “protocol revenue”

If this engine can truly and consistently capture flows from aggregators and trading entry points, then in the future, the value checkpoints for Haedal won’t just be TVL and the scale of LSTs—it will also include how much revenue it can leave from real trading