Sui Hashi

For cryptocurrency markets, how to unlock the financial potential of BTC is a topic worthy of long-term development. Recently, I noticed that a native BTC staking infrastructure protocol built on Sui is about to launch on the Sui DevNet, which is a new project worth the attention of DeFi players and BTC holders. Hashi allows native Bitcoin to be used directly as collateral in L1 smart contracts without the need for wrapping or custody by centralized entities.

Pain Points Being Solved

Currently, over 1.4 trillion dollars in Bitcoin are sitting idle. Although Bitcoin accounts for nearly 60% of the total cryptocurrency market value, less than 0.37% has been deployed in DeFi. Hashi aims to solve the problem of massive amounts of BTC remaining dormant long-term and unable to efficiently enter on-chain credit markets.

Core Highlights

Non-custodial: Previous attempts to bring Bitcoin into DeFi have mostly relied on centralized custody (such as institutions like Celsius that have caused major blowups), while Hashi achieves zero centralized custody in its core trust model. Trust assumptions are strictly reduced to two points: (1) the set of Sui validator nodes; (2) the smart contracts managing lending.

100% Native BTC: Assets always remain on the Bitcoin network, not synthetic or wrapped assets like wBTC or cbBTC that require entrusting Bitcoin to centralized entities.

Primary Use Cases

Serving as underlying support for BTC collateralized lending. Users can borrow stablecoins and other assets without selling their spot BTC. This decentralized operation is similar to traditional mortgages and typically does not trigger taxable events, helping reduce borrowers' tax exposure.

Trust

( 1) Soter is launching the first native BTC-denominated insurance product to protect BTC collateral on Hashi. Under Soter's insurance mechanism, BTC assets can receive "same-asset compensation" and be compensated in case of theft or loss. For DeFi protocols, this directly lowers the barrier to user participation, especially for BTC holders, directly driving motivation to participate in staking. (2) As a native Sui protocol, Hashi receives direct support from numerous protocols. Sui's core protocols including AlphaLend, Navi, Scallop, and Suilend will support Hashi on day one of launch, providing BTC lending access for retail users. As a foundational protocol filling the BTCFi gap, Hashi receives strong support from many protocol founders and CEOs.