Mechanism and Use Cases of sAVAX

What is sAVAX?

Overview of BENQI Liquid Staking
  • Value of sAVAX
  • Flexibility brought by sAVAX
  • Earning extra yield with sAVAX:
  1. AVAX staking rewards from Avalanche network (~7.2% at time of writing);
  2. Earnings from single sAVAX yield strategies (from 2% to 18% depending on the strategy);
  3. Earning from sAVAX-StableCoins yield strategies (from 12% to 60% depending on the strategy) *risk of impermanent loss*

sAVAX Yield Strategies: Expectation

sAVAX Use Cases

  1. Decentralized Exchanges
    Trader Joe is a prominent DEX on Avalanche. sAVAX’s holders can provide liquidity in the sAVAX-AVAX pool on Trader Joe to earn some swap fees and token rewards. Impermanent loss is ignorable owing to the price synchronization of this particular token pair. Decent liquidity is seen in this pool as shown in the following picture, considering the total amount of sAVAX minted so far.
Farming pool of Trader Joe
sAVAX lending/borrow overview

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