> For the complete documentation index, see [llms.txt](https://docs.benqi.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.benqi.fi/benqi-liquid-staking/architecture.md). # Architecture On this page, we'll provide an architectural overview of **BENQI Liquid Staking** based on the below graphic. We will explain how users can stake AVAX, receive sAVAX, and utilize it within DeFi while earning rewards.
### **1. Staking AVAX with BENQI** Beginning at the top of the graphic, users stake AVAX on the C-Chain and receive **sAVAX** tokens on the C-Chain, representing their staked AVAX. This AVAX is then delegated to validator nodes on the Avalanche P-Chain, where it contributes to network security and earns staking rewards. Funds are secured via MPC encryption on the P-Chain and bridged to the C-Chain. ### **2. Earning and Redeeming Rewards** Staked AVAX continues to earn rewards on the P-Chain, and the value of **sAVAX** accrues as these rewards accumulate. To redeem AVAX, users can either: * **Claim AVAX** directly through BENQI Liquid Staking with a **15-day cooldown period**, or * **Instantly swap sAVAX for AVAX** on an Automated Market Maker (AMM) platform if they prefer immediate liquidity, though AMM fees may apply. ### **3. sAVAX DeFi Integrations** The **sAVAX** token provides additional utility by allowing users to participate in decentralized finance (DeFi) protocols. Users can use sAVAX in **BENQI Markets** or other DeFi platforms to earn extra yield, borrow against it, or engage in various DeFi activities. This setup allows users to **maintain exposure to AVAX staking rewards** while also unlocking liquidity through DeFi, enhancing both yield opportunities and flexibility in asset management.