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- Sui has launched Hashi, a new decentralized primitive it says will unlock Bitcoin-backed DeFi on the network.
- At launch, it has enlisted Bullish and FalconX for stablecoin liquidity, CF Benchmarks for pricing data, Wave Digital for bond issuance and BitGo and Ledger for custody.
Sui has announced the launch of Hashi, a new standard for institutional Bitcoin DeFi on its network. The decentralized primitive will unlock capital efficiency for trillions of dollars worth of BTC that currently sit idle, enabling their holders to earn yield on Sui DeFi protocols.
Despite BTC’s $1.43 trillion market cap, only $3 billion (0.22%) is currently used in DeFi. Unlike Ethereum, which can plug directly into DeFi protocols, BTC has to be wrapped or used as synthetic tokens in DeFi. It can also be bridged to other chains or deposited with a custodian. All these are complex, time-consuming, less secure and costly, discouraging institutional participation.
Sui has launched Hashi to fix this with a trustless primitive that will enable DeFi protocols on its network to use native BTC without wrapping or bridging for lending, collateral management and other structured products.
Hashi will be a base protocol that other DeFi apps can build on, not a consumer-facing app. Sui says that at launch, some of the leading protocols on its network, including Navi, AlphaLend, Scallop and Suilend will offer Hashi services to retail users.
Adeniyi Abiodun, the co-founder of Mysten Labs, the company behind Sui, commented:
Think of Hashi as the unlock for developers to design solutions opening access to trillions in BTC liquidity. Builders finally will have a blank canvas to launch new financial services on top of Hashi, meeting long-term BTC holders’ demands with the transparency benefits of the Sui blockchain.
Sui Enlists Leading Firms to Support Hashi
Sui revealed that it has partnered with some of the leading digital asset firms on Hashi for custody, security, pricing data and insurance.
At launch, BitGo, Ledger, Blockdaemon, Cobo, Fordefi and Cubist will allow their clients to allocate their Bitcoin into Hashi-based yield-bearing opportunities. The protocol will primarily focus on lending at first, with BTC borrowed and lent against stablecoins. Developers can build other use cases beyond lending after launch.
The network has enlisted institutional exchange Bullish, prime broker FalconX, and chartered bank Erebor to supply BTC and stablecoin liquidity. Erebor will also offer on- and off-ramping services.
CF Benchmarks joins the new ecosystem to provide pricing data through oracle networks. CF is one of the largest crypto index providers, and its indices are used by the CME on its digital asset derivative products.
For insurance, Hashi will rely on Soter Insure, which will offer “the industry’s first native Bitcoin-denominated insurance products built to secure BTC collateral on Hashi.” This will allow users to recover their funds in cases of theft or loss. Soter settles all claims in BTC, guaranteeing an asset-liability match.
AlphaLend CEO, Raj Murakonda, commented:
Most Bitcoin in DeFi today is wrapped or synthetic, but Hashi will bring native BTC liquidity directly into the Sui ecosystem. By supporting Hashi on AlphaLend, we’re giving users a fast, capital-efficient way to borrow against their BTC, that will transform it into productive capital.
This week, Sui introduced a new virtual machine that improves transaction speed and cuts network memory overheads, as reported by CNF.
