BENQI Liquid Staked AVAX (SAVAX)
BENQI Liquid Staking represents a pioneering advancement in the Avalanche ecosystem, offering a unique liquid staking protocol. As the first of its kind on Avalanche, BENQI Liquid Staking enables users to stake AVAX tokens and receive sAVAX, an interest-bearing derivative. This arrangement allows participants to leverage their staked assets in decentralized finance (DeFi) activities while contributing to the security of the Avalanche network.
The Avalanche network
Avalanche is a decentralized blockchain platform designed to enhance scalability, security, and decentralization. It provides a high-performance environment for the deployment of decentralized applications and enterprise blockchain solutions. Avalanche’s consensus protocol enables a swift finality of transactions, making it an attractive platform for developers and users alike.
| Ticker | SAVAX |
| Category | Avalanche Ecosystem |
| Website | https://staking.benqi.fi |
| @BenqiFinance | |
| Telegram | BENQIFinance |
| Contract Addresses | |
|---|---|
| avalanche | 0x2b...be Copied! |
AVAX token
AVAX is the native token of the Avalanche network. It serves multiple purposes, including securing the network through staking, paying for transaction fees, and participating in network governance. AVAX's utility within the ecosystem underpins its role in BENQI Liquid Staking, where it is staked to earn rewards and engagement in DeFi.
Understanding BENQI Liquid Staking
BENQI Liquid Staking offers a novel approach to staking by providing liquidity and flexibility to staked assets. Through the protocol, users can participate in securing the Avalanche network while simultaneously accessing the broader DeFi ecosystem without locking up their assets.
How BENQI Liquid Staking works
To participate in BENQI Liquid Staking, users stake their AVAX tokens with the protocol. In return, they receive sAVAX tokens, which represent their staked AVAX and the accrued interest. These sAVAX tokens are liquid, meaning they can be used in various DeFi applications, including lending, borrowing, and trading, thus maximizing the utility of staked assets.
Earning rewards
By staking AVAX with BENQI Liquid Staking, users earn rewards from two sources. First, they receive staking rewards for contributing to the security and validation of the Avalanche network. Second, they can earn additional yields through DeFi activities using their sAVAX tokens. This dual reward system enhances the potential returns for participants.
Benefits of BENQI Liquid Staking
BENQI Liquid Staking provides several advantages to users and the Avalanche network as a whole. By offering a liquid staking solution, it overcomes traditional limitations associated with staking, such as asset illiquidity and opportunity costs.
Enhanced liquidity
The issuance of sAVAX tokens allows users to maintain liquidity while their AVAX is staked. This flexibility enables them to engage in various DeFi strategies without sacrificing the rewards from network staking, thus optimizing asset utilization.
Increased security and decentralization
By encouraging more users to stake AVAX, BENQI Liquid Staking contributes to the security and decentralization of the Avalanche network. A larger pool of staked assets increases network resilience and enhances its robustness against potential attacks.