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BENQI Liquidity Market
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BENQI Liquid Staking
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Benqinomics
Overview
Stake AVAX without locking it up. Earn and freely use it within DeFi.
What is BENQI Liquid Staking (BLS)?
BENQI Liquid Staking (BLS) 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.
BLS allows users to stake AVAX on the Avalanche C-Chain* without needing to stake on the Avalanche P-Chain*. This allows users to earn validating rewards from the P-Chain without running a full node or locking up AVAX on a validating node.
*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.
Why Liquid Staking?
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's Liquid Staked AVAX), users will now be able to utilize the asset within Decentralized Finance dApps while earning passive returns from Avalanche staking itself.
The sAVAX asset provides developers and users a wealth of strategies and options to build off from.
Overview of BENQI Liquid Staking
Benefits of staking AVAX on BLS
- No lock-up periods
- Zero fees for depositing and withdrawing from BLS
- Full control over your asset and associated accounts
- Seamlessly stake your 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 dApps.
Last modified 4mo ago