# What is stAVAX **`stAVAX`** (*Staked AVAX*) is a yield-bearing liquid staking token that represents your staked AVAX within the Hypha ecosystem. It is designed as an [**ERC-4626**](https://ethereum.org/en/developers/docs/standards/tokens/erc-4626/) tokenized vault, a DeFi standard that makes it highly composable and easy to integrate with other protocols. The core purpose of `stAVAX` is to solve the liquidity problem of traditional staking. It allows you to **earn comprehensive yields** from the Avalanche network while keeping your funds liquid, meaning you can trade, lend, or use your staked position in DeFi applications without locking your `AVAX`. ### How It Works When you stake `AVAX` into [Hypha](https://app.gogopool.com/liquid-staking/) on the C-Chain, you receive an equivalent amount of `stAVAX` based on the current exchange rate. The protocol then securely transfers these funds to Avalanche's Platform Chain (P-Chain). On the P-Chain, your AVAX is put to work by validating the network through a group of high-performance validators. A portion of these validator nodes may also opt-in to perform MEV (Maximal Extractable Value) to capture additional profit. By combining these strategies, the underlying pool of AVAX earns yield from multiple sources. As this yield is collected, the total assets in the vault increase, which means the value of each `stAVAX` token you hold grows over time in relation to `AVAX`. For example, you might eventually be able to redeem `1 stAVAX` for `1.2 AVAX`. The protocol runs on continuous 15-day staking cycles. Funds are staked on the P-Chain to earn validation rewards, then transferred to the C-Chain vault at the end of each cycle. Over the following 15 days, these rewards are streamed to the `stAVAX` contract, automatically raising the AVAX value of all `stAVAX`. This creates a seamless loop where new staking begins as previous rewards are added, ensuring stAVAX steadily appreciates against AVAX. ### Protocol Fee The protocol charges a fee on the staking rewards generated from AVAX deposited into the `stAVAX` vault. This fee is determined by the **ProtocolDAO** and is deducted before rewards are distributed to `stAVAX` holders. > The current protocol fee is 10% (1000 bps) of all generated staking rewards. * How It Works * The **ProtocolDAO** sets the fee rate, expressed in basis points (bps). * When staking rewards are deposited into the `stAVAX` vault, the protocol automatically calculates the fee as a percentage of those rewards. The deducted amount is sent to the ProtocolDAO. * The remaining rewards stay in the vault and compound, increasing the value of `stAVAX`. * Example * If 100 AVAX worth of rewards are earned and the fee rate is set to 10% (1000 bps): * Fee deducted: 100 AVAX × 10% = 10 AVAX * 10 AVAX is transferred to the ProtocolDAO * 90 AVAX remains in the vault, compounding into `stAVAX` --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.hypha.sh/liquid-staking/stavax/what-is-stavax.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.