Sui will contribute 25 million SUI to support three liquid staking protocols and their respective liquid staking tokens (LSTs), adding liquidity to a growing area of decentralized finance (DeFi) on the network. This infusion will strengthen the LSTs' liquidity in swaps and other DeFi uses.
Liquid staking lets SUI owners earn rewards by committing their tokens to validators, while at the same time receiving LSTs they can use for typical DeFi activities. DEXes on Sui support various yield earning uses for the LSTs, although people who sell their LSTs also transfer ownership of the underlying SUI.
The LSTs chosen to receive the delegation came from the Sui Liquid Staking Hackathon, which ran from August 16 to October 2, 2023. The hackathon winners were Aftermath Finance, with afSUI, Haedal Protocol, with haSUI, and Volo, with vSUI. Each of these LSTs currently trade on Sui.
This infusion will help bootstrap use of the LSTs, making their trading pairs sustainable in the long term as more DeFi users take their own positions.