{"id":"benqi-liquid-staked-avax","title":"BENQI Liquid Staked AVAX (sAVAX)","content":"**BENQI Liquid Staked AVAX** is a [decentralized finance](https://iq.wiki/wiki/defi) (DeFi) protocol operating on the [Avalanche](https://iq.wiki/wiki/avalanche) [blockchain](https://iq.wiki/wiki/blockchain), designed to address the illiquidity of staked Avalanche (AVAX) tokens. It allows users to stake their AVAX and receive sAVAX, a liquid staking derivative that can be freely utilized across various DeFi applications while still accruing [staking](https://iq.wiki/wiki/staking) rewards.\n\n$$widget0 [YOUTUBE@VID](https://youtube.com/watch?v=hIrwpP57WJc)$$\n\n## Overview\n\nThe [Avalanche](https://iq.wiki/wiki/avalanche) network, as a [Proof-of-Stake](https://iq.wiki/wiki/proof-of-stake) (PoS) [blockchain](https://iq.wiki/wiki/blockchain), requires users to stake their AVAX tokens to participate in network validation and earn rewards. However, traditional [staking](https://iq.wiki/wiki/staking) on Avalanche's Platform Chain (P-Chain) locks these tokens, rendering them inaccessible for other financial activities within the [DeFi](https://iq.wiki/wiki/defi) ecosystem. BENQI [Liquid Staking](https://iq.wiki/wiki/liquid-staking) (BLS) was developed to solve this issue by tokenizing staked AVAX into sAVAX. This mechanism enables users to maintain exposure to AVAX staking rewards while simultaneously unlocking the liquidity of their assets, allowing them to be deployed in other DeFi protocols such as automated market makers (AMMs), lending platforms, and yield aggregators. As of July 2025, BENQI Liquid Staked AVAX holds a [Total Value Locked](https://iq.wiki/wiki/tvl) (TVL) of approximately $351.91 million, all of which is on the Avalanche blockchain. [\\[1\\]](#cite-id-rWYpE83FUu) [\\[2\\]](#cite-id-rQfjsMepnG)\n\n## Technology and Functionality\n\nBENQI [Liquid Staking](https://iq.wiki/wiki/liquid-staking) operates by allowing users to deposit their AVAX tokens into the protocol. In return, they receive sAVAX tokens, which represent their staked AVAX position and automatically accrue [staking](https://iq.wiki/wiki/staking) rewards over time. The value of sAVAX is designed to increase relative to AVAX as staking rewards are accumulated. The price of sAVAX is determined by the ratio of total AVAX staked to total sAVAX minted, multiplied by the current AVAX price.\n\n$$widget0 [YOUTUBE@VID](https://youtube.com/watch?v=FD__jhwDQZg)$$\n\nA key feature of BENQI [Liquid Staking](https://iq.wiki/wiki/liquid-staking) is its cross-chain [staking](https://iq.wiki/wiki/staking) capability. While [Avalanche](https://iq.wiki/wiki/avalanche) staking typically occurs on the P-Chain, [BENQI](https://iq.wiki/wiki/benqi) simplifies the process by allowing users to stake AVAX directly from the C-Chain (Contract Chain). The protocol then securely and automatically bridges these assets to the P-Chain for staking using Multi-Party Computation (MPC) encryption. This eliminates the need for users to manually bridge their tokens, streamlining the staking experience.\n\nThe protocol offers several benefits to users:\n\n* **DeFi Integrations**: sAVAX is integrated into various [DeFi](https://iq.wiki/wiki/defi) protocols, enabling users to earn both native [staking](https://iq.wiki/wiki/staking) rewards and additional yields from other DeFi activities. For instance, sAVAX can be lent out on lending protocols, supplied to liquidity pools (e.g., sAVAX/AVAX), or used in other derivative products.\n* **No Lock-Up Periods and Zero Fees**: Unlike traditional [staking](https://iq.wiki/wiki/staking) which often involves fixed lock-up periods, BENQI Liquid Staking allows users to unstake their AVAX at any time. The protocol does not charge fees for staking, depositing, or withdrawing [AVAX](https://iq.wiki/wiki/avalanche-avax).\n* **Unstaking Process**: While there are no lock-up periods, unstaking [AVAX](https://iq.wiki/wiki/avalanche-avax) through the protocol involves a 15-day unlock period. During this period, the sAVAX continues to accrue rewards. Rewards cease accruing only during the final 2-day redemption period after the unstake request has been processed. For users seeking immediate liquidity, secondary markets provide instant swaps between sAVAX and AVAX based on prevailing market rates.\n\nThe BENQI Liquid Staking protocol has undergone audits to ensure its security and reliability. [\\[1\\]](#cite-id-rWYpE83FUu) [\\[3\\]](#cite-id-2OzwSZqP1n) [\\[9\\]](#cite-id-m4lwhsdAxl)","summary":"BENQI Liquid Staked AVAX on Avalanche lets users stake AVAX for sAVAX, a liquid token that earns rewards and can be used in DeFi, solving traditional staking's illiquidity.","images":[{"id":"QmZR7tbmdLTNqAL8EXzM8AW8JQHMStTZYvvU33hXUWgVeH","type":"image/jpeg, image/png"}],"categories":[{"id":"defi","title":"defi"}],"tags":[{"id":"Protocols"}],"media":[{"id":"QmZBoGxUgHA27U3yMS9ZAz4zUxzRfdChhmU7RvXRUguTLL","type":"GALLERY","source":"IPFS_IMG"},{"id":"QmVpc7c8r39BgYe6qWzXo48fL8TH8cju3phipX55FvBUPo","name":"Cópia de Design sem nome (1).png","caption":"","thumbnail":"QmVpc7c8r39BgYe6qWzXo48fL8TH8cju3phipX55FvBUPo","source":"IPFS_IMG"},{"id":"QmTVxr9VCvZaSU2ViFhub1yH7iQrHYceBCgzUa9weimfMK","name":"Cópia de Design sem nome (3).png","caption":"","thumbnail":"QmTVxr9VCvZaSU2ViFhub1yH7iQrHYceBCgzUa9weimfMK","source":"IPFS_IMG"},{"id":"QmRKFXL3PgvDHuCFD92i8mRu1mMwHXUSoeLag7x5bZJWyc","name":"Cópia de Design sem nome (2).png","caption":"","thumbnail":"QmRKFXL3PgvDHuCFD92i8mRu1mMwHXUSoeLag7x5bZJWyc","source":"IPFS_IMG"},{"id":"https://www.youtube.com/watch?v=hIrwpP57WJc","name":"hIrwpP57WJc","caption":"","thumbnail":"https://www.youtube.com/watch?v=hIrwpP57WJc","source":"YOUTUBE"},{"id":"https://www.youtube.com/watch?v=FD__jhwDQZg","name":"FD__jhwDQZg","caption":"","thumbnail":"https://www.youtube.com/watch?v=FD__jhwDQZg","source":"YOUTUBE"}],"metadata":[{"id":"references","value":"[{\"id\":\"rWYpE83FUu\",\"url\":\"https://docs.benqi.fi/benqi-liquid-staking/overview\",\"description\":\"BENQI Liquid Staking Overview\",\"timestamp\":1752779249702},{\"id\":\"rQfjsMepnG\",\"url\":\"https://defillama.com/protocol/benqi-staked-avax\",\"description\":\"DefiLlama BENQI Staked AVAX Data\",\"timestamp\":1752779249702},{\"id\":\"2OzwSZqP1n\",\"url\":\"https://docs.benqi.fi/resources/risks\",\"description\":\"BENQI Risks & Audits\",\"timestamp\":1752779249702},{\"id\":\"dzd9yRMr3g\",\"url\":\"https://defillama.com/protocol/ankr\",\"description\":\"DefiLlama Ankr Data\",\"timestamp\":1752779249702},{\"id\":\"iBajHrRk0z\",\"url\":\"https://defillama.com/protocol/hypha\",\"description\":\"DefiLlama Hypha Data\",\"timestamp\":1752779249702},{\"id\":\"RsJK4qEGD7\",\"url\":\"https://defillama.com/protocol/geode\",\"description\":\"DefiLlama Geode Data\",\"timestamp\":1752779249702},{\"id\":\"8deulx7rSt\",\"url\":\"https://defillama.com/protocol/yield-yak-staked-avax\",\"description\":\"DefiLlama Yield Yak Staked Avax Data\",\"timestamp\":1752779249702},{\"id\":\"XYARnKnU82\",\"url\":\"https://defillama.com/protocol/vaultlayer\",\"description\":\"DefiLlama VaultLayer Data\",\"timestamp\":1752779249702},{\"id\":\"m4lwhsdAxl\",\"description\":\"CoinMarketCap: Benqi LS\",\"timestamp\":1752780419392,\"url\":\"https://coinmarketcap.com/currencies/benqi-liquid-staked-avax/\"}]"},{"id":"website","value":"https://staking.benqi.fi/"},{"id":"discord_profile","value":"https://discord.com/invite/kNfnqcgj2H"},{"id":"telegram_profile","value":"https://t.me/BENQIFinance"},{"id":"twitter_profile","value":"https://twitter.com/BenqiFinance"},{"id":"contract_url","value":"https://snowtrace.io/token/0x2b2c81e08f1af8835a78bb2a90ae924ace0ea4be"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/benqi-liquid-staked-avax"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/benqi-liquid-staked-avax/"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmdfvZSP4T3UtfdAXKg8tvqvWD59TBYGSx3sfW7JM9KSwd\""},{"id":"commit-message","value":"\"Update title to 'BENQI Liquid Staked AVAX (sAVAX)' and improve video embed spacing.\""},{"id":"previous_cid","value":"QmdfvZSP4T3UtfdAXKg8tvqvWD59TBYGSx3sfW7JM9KSwd"}],"events":[],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":["avalanche"],"founders":["benqi"],"speakers":[]}}