# 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. 

<figure><img src="/files/mEnswFOUpgWPnA5hanUi" alt=""><figcaption></figcaption></figure>

### **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.


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