Using stAVAX in DeFi
The primary advantage of stAVAX is its liquidity. Unlike traditionally staked AVAX, which is locked and illiquid, stAVAX is a standard token that can be freely used across Avalanche's vibrant DeFi ecosystem to earn additional yield or rewards.
Here are the primary ways you can use your stAVAX:
Money Markets (Lending & Borrowing)
You can supply your stAVAX to money markets to use it as collateral for borrowing other assets, or you can lend it out to earn additional interest. This is a popular strategy for improving capital efficiency and can enable advanced strategies like looping your stake.
Decentralized Exchanges (DEXs)
You can become a Liquidity Provider (LP) by depositing your stAVAX into a liquidity pool, usually paired with AVAX (stAVAX-AVAX). By doing this, you help facilitate trades for other users and earn a percentage of the trading fees generated by the pool.
Yield Aggregators
These platforms offer set and forget strategies. You can deposit stAVAX into a vault that automatically manages and compounds your earnings from activities like liquidity providing, saving you time and transaction fees.
Supported Protocols: Yield Yak
Restaking Protocols
Restaking allows you to use your yield-bearing stAVAX to help provide economic security for other protocols. In exchange for taking on this additional role, you can earn extra rewards from the protocol you are helping to secure.
Supported Protocols: Suzaku
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