What is pstAVAX

pstAVAX (Principal Staked AVAX) is an ERC-20 token designed for users who want to support the Hypha ecosystem's growth in exchange for direct incentives from Hypha.

It represents a user's principal deposit at a fixed 1-to-1 ratio. When you deposit 1 AVAX (or WAVAX), you receive exactly 1 pstAVAX. Under the hood, your deposited AVAX is converted into stAVAX and held by the pstAVAX contract, where it generates yield for the ecosystem.

The most important feature of pstAVAX is that holders do not receive this yield. Instead, the yield that would have been earned is automatically stripped and used to benefit all stAVAX holders. In return, pstAVAX holders become eligible for a separate reward system, such as airdrops and other direct incentives from Hypha.

Alignment Plugins

pstAVAX is the first of Hypha's alignment plugins, a new type of tool that allows protocols to build innovative incentive structures on top of staked assets. This means other L1s can use this same model to create their own version (i.e., xyzAVAX). In exchange for offering their own project's tokens, airdrop points, or other unique perks to depositors, these L1s can use the resulting staking yield to bootstrap liquidity, generate protocol revenue, or fund their operation.

You can redeem your pstAVAX to get your initial AVAX deposit back by withdrawing it directly as AVAX. This process uses the standard Withdrawal Queue, which includes a 15-day cooldown period. The final amount of AVAX you receive will be equal to your initial deposit.