Triple Yield Mechanism

The APY (Annual Percentage Yield) for stAVAX is a result of three distinct yield sources combined. This multi-layered approach is designed to create a highly competitive and sustainable yield for stAVAX holders.

1. Avalanche Staking Rewards

This is the primary yield source. All AVAX deposited into the vault is put to work validating the Avalanche network

2. MEV Rewards

MEV (Maximal Extractable Value) is additional profit captured from the ordering of transactions within a block. Hypha is committed to an ethical approach, focusing exclusively on beneficial MEV strategies like arbitrage. This helps to balance prices across different platforms without negatively impacting user trades.

The profits captured are then added to the staking rewards, increasing the overall yield for all stAVAX holders.

3. pstAVAX Yield Donations

The Hypha ecosystem includes another token, pstAVAX, where users deposit AVAX but agree to forgo their staking yield in exchange for other rewards. Instead of going to the pstAVAX holder, this yield is periodically collected and donated directly into the stAVAX vault. This regular donation of yield acts as a rewards boost, increasing the overall APY for everyone holding stAVAX

Reward Collection and Distribution

The rewards from both native staking and MEV are collected together over a 15-day cycle. These combined rewards are then streamed out linearly and deposited into the stAVAX vault over the following 14-day period.