Avalanche Liquid Staking Using Metamask
How does liquid staking work?
AVAX staking requires you to lockup your tokens, usually in intervals of 3, 6, 9, or 12 months. This might not work for you. You may want your funds to stay liquid.
DeFi users generally want full liquidity, so they can quickly swap or lend out their tokens to earn extra yield. That’s where liquid staking plays a crucial role. Avalanche Liquid staking on Benqi allows you to convert your AVAX into liquid staked sAVAX tokens.
sAVAX tokens earn AVAX staking rewards by simply existing on-chain. You do not need to do anything with them.
Benqi is the original and most widely used AVAX liquid staking protocol. The protocol also enables you to supply other assets, like WBTC, USDC, and USDT to earn Benqi’s native QI tokens.
Additionally, QI tokens can be earned by supplying your liquid staked sAVAX back to Benqi. You can generate even more yield by depositing AVAX, receiving sAVAX in return, and then supplying your sAVAX back to Benqi.
What do you do with your QI tokens? You can stake them to earn more QI. Plus, QI stakers can vote for their favorite validators to boost their AVAX staking yield.
If you have staked your QI tokens, please vote for our Node ID: MmTfUacXsPdKryR3WkVteMqoFvyxEdYf4
Is liquid staking risky?
Liquid staking has additional risks to consider. That’s the nature of all derivatives. You not only bear the risks associated with the Avalanche network and AVAX token, but you bear the additional risk of the liquid staking provider getting hacked, getting taken over by malicious governance, going insolvent, etc.
For the average crypto investor it’s prudent to limit liquid staking derivatives to 25% of your holdings. DeFi users are often comfortable with a much higher percentage.
How to liquid stake AVAX using Metamask
In this step-by-step tutorial we will show you how to liquid stake AVAX on Benqi using Metamask. It’s a piece of cake! Remember, you will need AVAX tokens for gas.
1. Navigate to https://staking.benqi.fi/stake. (see image below)
2. Click “Connect wallet” and select “Metamask.” (see images below)
3. Enter the amount of AVAX you would like to liquid stake and then click the “Stake” button. (see image below)
4. Confirm the transaction in your Metamask wallet. (see images below)
5. Add the sAVAX token to Metamask so you can see your position in your wallet. (see image below)
That’s it! Your AVAX tokens are liquid staked and your sAVAX tokens provide full liquidity while also earning staking rewards.
What do I do with sAVAX tokens?
You can simply let your newly minted sAVAX tokens sit idle at your wallet address. You can use them to supply liquidity to a DEX. Or, you can lend them back to Benqi to earn QI tokens!
Supply sAVAX to Benqi and earn QI tokens
Benqi needs liquidity so people can liquid stake their AVAX tokens. If you lend your sAVAX back to the platform they will pay you with QI tokens. You can then stake your QI to earn even more QI tokens! It’s a common strategy to earn extra yield.
When you stake your QI tokens, you receive vote escrowed QI as your receipt (veQI). Those veQI tokens allow you to vote for your favorite validators and direct where Benqi stakes its AVAX. That boosts the validator’s AVAX staking yield.
Be sure to check out our detailed QI staking tutorial.
To supply your sAVAX tokens to Benqi and earn QI tokens:
1. Click the “Lend and borrow” tab on https://staking.benqi.fi/stake and it will take you to their markets page. (see image below) Remember, you will need AVAX tokens for gas.
2. Connect your wallet and then click the dropdown. You will see all the various assets that you can supply to Benqi to earn QI tokens. Select sAVAX. (see image below)
3. Use the slider to choose the percentage of your sAVAX tokens you would like to supply to Benqi. Or, enter the number in the box. Then click “Approve & Supply.” (see image below)
4. Click “Next” to approve the transaction in Metamask. Be sure to set the spending limit to the number of sAVAX tokens you are supplying to Benqi. As a safety precaution, never approve unlimited amounts. (see image below)
5. Click “Confirm” to submit the transaction and supply your sAVAX to Benqi. (see image below)
Click the X in the top corner to close out the confirmation message.
6. Then, click the “Rewards” tab in the menu and you’ll see that you are now earning QI tokens! (see image below)
Now you know how simple it is to earn QI tokens by lending your sAVAX tokens to Benqi!
What can I do with my QI tokens?
After you have earned a stack of QI tokens, you can stake them. Staking QI tokens not only pays you more QI tokens, but allows you to boost the AVAX staking yield for your favorite validators.
Be sure to check out our detailed QI staking tutorial.
Frequently Asked Questions
Staking yield fluctuates based on inflation, network activity, validator performance, validator commission, etc. As of April 2024 the AVAX staking yield is around 8%.
Core wallet is the preferred wallet for the Avalanche ecosystem. Metamask, OKX, Coinbase wallet, and Trust wallet work well too.
No, you cannot unstake your AVAX before the term is up. That’s one of the reasons liquid staking is attractive. Liquid staking tokens, like sAVAX are fully liquid.
Yes, you must stake at least 25 AVAX from a noncustodial wallet to participate. However, there is no minimum for liquid staking on Benqi.
There is a 15 day period when you unstake your sAVAX on Benqi called the, cooldown period. You will have your AVAX tokens 15 days after unstaking. If you don’t want to wait, simply swap your sAVAX for AVAX on a DEX.
Nothing we say is financial advice or a recommendation to buy or sell anything. Cryptocurrency is a highly speculative asset class. Staking crypto tokens carries additional risks, including but not limited to smart-contract exploitation, poor validator performance or slashing, token price volatility, loss or theft, lockup periods, and illiquidity. Past performance is not indicative of future results. Never invest more than you can afford to lose. Additionally, the information contained in our articles, social media posts, emails, and on our website is not intended as, and shall not be understood or construed as financial advice. We are not attorneys, accountants, or financial advisors, nor are we holding ourselves out to be. The information contained in our articles, social media posts, emails, and on our website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation. We have done our best to ensure that the information provided in our articles, social media posts, emails, and the resources on our website are accurate and provide valuable information. Regardless of anything to the contrary, nothing available in our articles, social media posts, website, or emails should be understood as a recommendation to buy or sell anything and make any investment or financial decisions without consulting with a financial professional to address your particular situation. Atlas Staking expressly recommends that you seek advice from a professional. Neither Atlas Staking nor any of its employees or owners shall be held liable or responsible for any errors or omissions in our articles, in our social media posts, in our emails, or on our website, or for any damage or financial losses you may suffer. The decisions you make belong to you and you only, so always Do Your Own Research.
