Question 1

What is BENQI Liquid Staked AVAX (sAVAX)?

Accepted Answer

BENQI Liquid Staked AVAX (sAVAX) is a liquid staking token issued by the BENQI protocol on the Avalanche blockchain. It represents AVAX tokens staked through BENQI's liquid staking system. When users stake AVAX via BENQI, they receive sAVAX tokens, which accrue staking rewards over time. This mechanism allows users to participate in Avalanche's network security while maintaining liquidity through sAVAX.

Question 2

What is sAVAX used for?

Accepted Answer

sAVAX serves multiple functions within the Avalanche decentralized finance (DeFi) ecosystem:

* **Staking Rewards:** sAVAX accrues staking rewards automatically, reflecting the yield generated from the underlying staked AVAX.
 
* **DeFi Integration:** sAVAX can be utilized across various DeFi platforms for activities such as lending, borrowing, and providing liquidity. For instance, users can supply sAVAX to lending protocols to earn additional yield or use it as collateral to borrow other assets.
 
* **Liquidity Provision:** sAVAX can be paired with other tokens in liquidity pools on decentralized exchanges, facilitating trading and earning fees.

Question 3

Who created BENQI Liquid Staked AVAX (sAVAX)?

Accepted Answer

sAVAX is a product of BENQI, a decentralized finance protocol launched in 2021 on the Avalanche network. BENQI was co-founded by Dan Mgbor and focuses on providing DeFi services such as lending, borrowing, and liquid staking. The protocol is governed by its community through the BENQI Governance Token (QI), enabling decentralized decision-making and protocol upgrades.