Overview
Stake AVAX without locking it up. Earn and freely use it within DeFi.
BENQI Liquid Staking is a liquid staking protocol built on Avalanche.
It tokenizes staked AVAX and allows users to freely use it within Decentralized Finance dApps such as automated market makers (AMMs), lending & borrowing protocols, yield aggregators, etc.
BENQI Liquid Staking provides users with a seamless solution to stake AVAX on the Avalanche C-Chain*. As traditional staking on Avalanche occurs on the Avalanche P-Chain* users will be required to execute tedious cross-chain transfers to get started. With BENQI Liquid Staking, all users require is an EVM-compatible wallet and some AVAX to get started.
Avalanche C-Chain: The Avalanche Contract Chain is the default smart contract blockchain on Avalanche and enables the creation of any Ethereum-compatible smart contracts. This blockchain is for applications that require total ordering and is the main blockchain where Decentralized Finance dApps are built on.
Avalanche P-Chain: The Avalanche Platform Chain is the metadata blockchain on Avalanche and coordinates validators, keeping track of active subnets and enables the creation of new subnets. This blockchain is where Avalanche Validating and Staking is done.
Avalanche is a Proof-of-Stake (POS) network that generates returns for users staking the AVAX token on validator nodes to secure the network. This is done on the Avalanche Platform Chain (P-Chain) which essentially locks up the AVAX token for a predetermined time. This results in the lock up of capital, unable to be utilized within Decentralized Finance (DeFi).
Liquid Staking provides a solution for freeing up this locked up capital, creating greater capital efficiency within the Avalanche network. By tokenizing the staked AVAX into sAVAX (BENQI Staked AVAX), users will now be able to utilize the asset within Decentralized Finance protocols while earning passive returns for securing Avalanche.
The sAVAX asset provides developers and users a wealth of strategies and options to build off from.
Overview of BENQI Liquid Staking
- No lock-up periods
- Zero fees for depositing and withdrawing from BLS
- Full control over your asset and associated accounts
- Seamlessly stake AVAX and start earning without needing to execute cross-chain transfers to the Avalanche P-Chain
- Gain additional utility on your interest-bearing asset to be freely utilized within Decentralized Finance (DeFi).
Head over to the DeFi tab on the BLS app to view available sAVAX integrations with 3rd party DeFi protocols.