Leveraged Staking Strategies for sAVAX

Overview

What are the benefits of sAVAX in DeFi?

What are the steps involved in leveraged staking?

  1. Stake 100 AVAX in BENQI (BLS) to receive 100 sAVAX & staking yield;
  2. Deposit sAVAX in AAVE V3 lending market for supply yield (E-mode enabled);
  3. Flashloan 702.56 AVAX from Trader Joe (leveraged 7.02X);
  4. Stake the flashloaned 702.56 AVAX in BLS for extra staking yield;
  5. Deposit the extra 702.56 sAVAX in AAVE V3 lending market for extra supply APY;
  6. Using 802.56 sAVAX as collateral, borrow 703.2 AVAX to repay the flashloan.

How to calculate the leveraged staking strategy’s APY?

  • Principal is AVAX;
  • Exchange rate AVAX/sAVAX: R;
  • Collateral Ratio: 87.54% (leveraged 7.025x);

What are the different costs related to leveraged staking?

  1. CIAN will charge no fee during the promotional period (3 months);
  2. When executing a leveraged staking strategy, 0.09% of the total AVAX flashloaned will be charged (AAVE);
  3. Normal gas fees incurred by each transaction on AAVE and BENQI;
  4. AVAX borrow interest rate on AAVE;
  5. When closing a leveraged staking position, users will need to pay flashloan fees, exchange fees, and sAVAX/AVAX exchange ratio on DEXes (variable).

How to use leveraged staking on CIAN?

  1. Go to https://dapp.cian.app/dashboard and select “Leveraged Staking — AAVE”.

What are the risks related to leveraged staking, and how to mitigate them?

About BENQI

About CIAN

Resources

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store