{"id":1046,"date":"2023-12-18T01:08:01","date_gmt":"2023-12-18T01:08:01","guid":{"rendered":"https:\/\/shitcoinalpha.com\/?p=1046"},"modified":"2024-03-05T00:46:23","modified_gmt":"2024-03-05T00:46:23","slug":"liquid-staking-on-avalanche-benqi-protocol-overview","status":"publish","type":"post","link":"https:\/\/shitcoinalpha.com\/on-chain-protocols\/liquid-staking-on-avalanche-benqi-protocol-overview\/","title":{"rendered":"Liquid Staking On Avalanche: BenQi Protocol Overview"},"content":{"rendered":"\n
“Risk is the price you pay for opportunity.”<\/em><\/p>\n\n\n\n Navigating the crypto world can sometimes feel like dodging mines on an active battlefield. Staking your AVAX means exposing yourself to either smart contract risk or the risk of holding your funds on a centralized exchange.\u00a0<\/p>\n\n\n\n As a safe and reliable protocol, BenQi offers a nice change of pace in the hectic crypto world. While you won’t find exorbitant APY’s on BenQi, you will find a stable platform for lending, borrowing, and earning on your AVAX.<\/p>\n\n\n\n With over $500 million in TVL<\/a>, BenQi is the leading liquid staking protocol on Avalanche. Companies like Gensis Block Ventures<\/a>, Ava Labs<\/a>, and TRGC<\/a> have invested in BenQi, allowing the team to expand the protocol and the treasury. In this article, we’ll look at liquid staking AVAX with BenQi, how the lending\/borrowing protocol works, and an overview of the Qi token.<\/p>\n\n\n\n Liquid staking AVAX<\/strong><\/p>\n\n\n\n Normally, staking on Avalanche means you have to use the P-chain or a centralized exchange. Validators on the P-chain verify transactions that get executed on the C-chain and on subnets that run on Avalanche. Staking on the p-chain requires locking your AVAX for a predetermined amount of time.<\/p>\n\n\n\n Liquid staking allows people to use their AVAX while still earning staking rewards. The BenQi protocol tokenizes staked AVAX into sAVAX, which you can use in any DeFi protocol on Avalanche. The value of sAVAX is calculated by taking the total amount of AVAX staked divided by the total amount of sAVAX minted and then multiplied by the current AVAX price.<\/p>\n\n\n\n sAVAX Contract Address<\/strong><\/p>\n\n\n\n 0x2b2C81e08f1Af8835a78Bb2A90AE924ACE0eA4bE<\/p>\n\n\n\n BenQi makes it easy for regular people to stake their AVAX \u2013 you don’t have to commit to any lock-up periods, and there are no fees for depositing or withdrawing AVAX from the protocol.<\/p>\n\n\n\n You can start staking AVAX for around 5.9% APR on the BenQi staking page. https:\/\/staking.benqi.fi\/stake<\/a><\/p>\n\n\n\n Click Stake, then confirm the transaction in Metamask.<\/p>\n\n\n\n If you want to unstake your sAVAX for AVAX, use the unstaking tab. When you use the unstaking tab, you don’t have to pay any fees, but you will have to wait 15 days<\/strong> to get your AVAX. Once the 15 day period is done, you have 2 days to claim your AVAX, otherwise, it gets deposited back into the protocol. Look for your AVAX under the Active Claims tab.<\/p>\n\n\n\n Don’t worry \u2013 if you need to instantly convert your sAVAX, you can use any of the decentralized exchanges on Avalanche. Trader Joe<\/a> and Pangolin<\/a> are great options. You can swap your sAVAX for any other asset, but you’ll have to pay fees.<\/p>\n\n\n\nBenQi Protocol Overview<\/h1>\n\n\n\n
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