Why Haven1 owns its DeFi infrastructure without relying on third-party protocols

Most blockchain networks rely on third-party developers to build the core DeFi protocols such as decentralized exchanges (DEXes), lending markets, perpetual trading platforms, etc. As regular readers will know, we take a different approach here at Haven1.

We are building our protocols, including hPerps for perpetual trading and hLend for lending, to enhance security, usability, and the efficiency of Haven1's DeFi infrastructure. Rather than extracting value offchain with third-party products, our network utilizes these resources to reinforce protocol sustainability, ensuring long-term engagement among participants and ecosystem growth. 

That strategy is the same for our hSwap DEX and in this article we shall explain what that means, why it is important and what we believe sets it apart from others.

What Does “Network-Owned DeFi” Mean?

In most ecosystems, DeFi protocols are built independently, each with its own token—Uniswap has UNI, Aave has AAVE, GMX has GMX, and so on. These protocols generate billions in fees, but none of that accrues to the network token or its participants because of these DEX tokens.

But the problem runs deeper since a growing number of DEXes and DeFi protocols are building or have launched their own chains. That removes all liquidity and trading volume from the base layer (which is typically Ethereum) and reduces fees that would have otherwise gone to validators and stakers.

We don’t believe that is the right approach.

On Haven1, core DeFi protocols don’t have separate tokens—they use H1, the network’s native token. This ensures that the value generated directly benefits the network and its community. Rather than enriching external token holders, these resources support Haven1’s operational sustainability and network infrastructure..

Why go native?

1. Aligning Network and DeFi Incentives

There are numerous benefits when core DeFi infrastructure is owned by the network:

• Transaction fees contribute to network operations and infrastructure maintenance rather than being directed to external parties
• Staking mechanisms are designed to support network security and usability rather than relying on emissions-based models
• Institutions and users receive higher quality incentives for liquidity provision, staking, and governance participation.

A sustainable network means we can incentivize growth without excessive token inflation. That’s something most networks struggle with.

2. A Better, Seamless User Experience

When multiple third-party teams build independent DeFi apps, it is easy for the user experience to become fragmented. Sign-ins work differently across apps, liquidity is scattered, and every protocol competes for its own volume. 

By building DeFi protocols under a single umbrella, Haven1 ensures:

• Unified sign-ins across apps
• Integrated notifications across DeFi tools
• Efficient liquidity routing, meaning users get better trade execution and lower slippage

For example, hPerps doesn’t need to fragment liquidity by spinning up its own AMM. Instead, it taps into hSwap, the network’s native DEX.

This deep integration simply isn’t possible in an ecosystem where every protocol is built by different teams, all optimizing for their own separate token.

3. Speed & Flexibility in Innovation

Building and launching new DeFi products is painfully slow when different protocols, each with their own token holders, have to align incentives.

By owning these protocols, Haven1 can move fast and innovate:

• Any Haven1 network validators can easily offer “earn vaults” for B2B merchants
• These vaults need diversified risk-return strategies
• Normally, aligning 5-6 different protocol DAOs would take forever
• But on Haven1, we can make rapid upgrades across protocols

This agility means we can ship better, more competitive DeFi products faster than ecosystems relying on disconnected third-parties.

4. Solving Liquidity Fragmentation & fighting MEV

Most DeFi networks have dozens of forks of the same AMM, all fighting for liquidity. 

This leads to:

• Higher slippage for traders
• More Miner Extractable Value (MEV) bots front-running users
• Inefficient liquidity provision

By keeping DeFi network-owned, Haven1 consolidates liquidity, reducing fragmentation. With fewer, well-integrated liquidity pools, traders get better execution, and LPs earn higher yields.

On top of that, Haven1 doesn’t allow predatory MEV bots—which use algorithms to identify opportunities to front run transactions for profit—ensuring fairer markets for users.

Network-Owned Doesn’t Mean Closed

Our approach to DeFi shouldn’t be taken as closed, however. The goal isn’t to block great external projects. Instead, it is to prevent low-value, copy-pasta forks that extract more value than they contribute.

When Uniswap, Aave, GMX or other established players want to deploy on Haven1, they will be welcomed and richly supported. What we want to avoid is 10 forks of the same protocol with zero differentiation.

Additionally, we are still open to external innovation:

• hSwap is built by Haven1 network, but its automated liquidity management pools are built by Ichi.
• The network will offer looping protocol building lend and borrow loops to generate higher APY
• Similarly, we will work with an innovative third-party RWA protocol to build a lending product for RWA NFTs to generate additional yield on your RWA assets

We prioritize quality over quantity—any project that genuinely adds value to the network will be supported.

The Road Ahead

• hSwap launches with mainnet
• hPerps & hLend (lending/borrowing) are in final development—both are expected to launch after audits in May
• hNFTs marketplace is targeted for a June launch

By summer, Haven1 will have a full DeFi suite, with network-aligned incentives, superior UX, and deeper liquidity.

Final Thoughts

Developing native DeFi infrastructure was the more challenging path—but it was the right one for the network’s long-term sustainability and growth.

Haven1 isn’t just another L1 hoping for “TVL mercenaries” to farm and dump rewards. We’re building a sustainable, high-performance DeFi ecosystem where both users and institutions can thrive.

H1 holders win. Builders win. Liquidity providers win. 

Welcome to Network-Owned DeFi.