What Is Hashi? A Complete Guide to the Bitcoin Collateral Primitive on Sui

Overview of Hashi

Simply put, Hashi is an underlying protocol that enables native BTC to serve as programmable collateral on Sui.

Rather than a single lending app, Hashi functions as “primitive layer” infrastructure, designed for integration by lending protocols, asset management strategies, wallets, and custodians.

You can think of it as:

• The upper layer consists of lending and return products.
• The middle layer manages risk control, pricing, and liquidation rules.
• The bottom layer, managed by Hashi, handles BTC collateral and cross-chain coordination mechanisms.

What Problems Does Hashi Address

Historically, BTC’s participation in DeFi has faced three major challenges:

1. High trust costs: Many solutions rely on centralized custody or complex intermediaries, making it difficult for users to verify how assets are managed.
2. Insufficient transparency: Collateral ratios, liquidation thresholds, and risk parameters are sometimes not visible enough, making it difficult for institutions to participate at scale.
3. Low capital efficiency: Significant amounts of BTC remain idle, and holders seeking liquidity typically must sell their coins or take on substantial counterparty risk.

Hashi’s approach is to preserve the asset properties of BTC while making collateralization and credit processes as “codified” and “verifiable” as possible, reducing the scope for black-box operations.

How Hashi Works

Based on public information, Hashi’s core logic can be broken down into four steps:

1. Users deposit native BTC.
2. The system completes confirmation and status mapping.
3. On the Sui side, collateralization, lending, or credit issuance is executed according to established rules.
4. After repayment, the corresponding BTC can be redeemed.

Hashi emphasizes several mechanisms:

• Smart contract execution: Key parameters are governed by contracts, not manual discretion.
• Real time pricing input: Collateral ratio management is supported by benchmark pricing and oracle feeds.
• Automated risk control: When collateral health declines, preset liquidation or risk handling processes are triggered.

In essence, Hashi aims to “move BTC collateral lending from manual credit to rule-based credit.”

Key Participants and Ecosystem Support for Hashi

Hashi’s appeal is not only technical—it has also secured robust “institution + ecosystem” portfolio support. Public information lists the following participants:

• Institutions and infrastructure: BitGo, Bullish, FalconX, Erebor Bank, Ledger, Fordefi.
• Pricing and benchmark layer: CF Benchmarks.
• Sui ecosystem protocols: Navi, Scallop, Suilend, AlphaLend, and others.

This combination signifies two things:

• The opportunity to serve both institutional and retail markets.
• Preparation for real liquidity post-mainnet, not just a “concept launch.”

Practical Applications of Hashi

For BTC Holders

• Access stablecoin liquidity without selling BTC.
• Meet capital needs for business, investment, hedging, and more.
• Improve asset utilization efficiency under certain conditions.

For Institutions

• Integrate BTC into a more standardized credit and return framework.
• Simplify onboarding to custody, risk control, and audit processes.
• Explore fixed income, structured credit, and similar products.

For DeFi Protocols

• Onboard larger BTC collateral pools.
• Expand lending, vault, and return strategy offerings.
• Deepen protocol asset layers and enhance market appeal.

Risks and Boundaries to Monitor

A thorough overview must cover both opportunities and limitations. Key risks for Hashi include:

1. Mainnet rollout and adoption speed: Transitioning from Devnet to mainnet is critical; real transaction volume, liquidation performance, and resilience during extreme market conditions remain to be seen.
2. Cross-chain and system complexity risk: Increased architectural complexity and reliance on multiple components mean any malfunction can impact overall stability.
3. Oracle and pricing risk: Collateral systems are highly dependent on accurate pricing, and mechanism design is especially tested during periods of abnormal volatility.
4. Regulatory and compliance uncertainty: Definitions of compliance for BTC collateral and on-chain credit continue to evolve across regions.

In conclusion: Hashi is not a “risk-free return tool”—it is an infrastructure innovation aimed at improving BTC capital efficiency.

Conclusion: Hashi’s Role in BTCFi

BTCFi’s central question has always been:

How can BTC enter a sustainable credit market without compromising security and transparency?

Hashi’s value lies in advancing this goal to the “executable framework” level:

• Applying clear rules for collateral management.
• Supporting risk control with verifiable data.
• Driving real-world adoption through ecosystem collaboration.

In the short term, Hashi is a new infrastructure variable worth tracking.

Over the medium and long term, its success will depend on the quality of post-mainnet liquidity, risk control outcomes, and ongoing institutional participation.