⌛Leverage Staking

Unlocking liquidity and new financial market solutions

Y24 is embarking on a strategic partnership with BENQI, with the shared goal of catalyzing the evolution of the sAVAX ecosystem. sAVAX represents AVAX’s staking derivative, delivered by BENQI, the foremost liquid staking and lending protocol on the Avalanche network. The connection between sAVAX and AVAX mirrors the relationship observed between stETH and ETH.

BENQI and AAVE employ distinct leverage strategies:

1. sAVAX (AAVE): 8x

2. sAVAX (BENQI): 3x

In implementing Y24's leveraged staking strategy, the following steps will be executed concurrently within a single transaction. For illustration, let’s consider having 100 AVAX, with the exchange rate between sAVAX and AVAX set at 1. The maximum Loan-to-Value (LTV) is calculated as 0.95 multiplied by 0.97, further multiplied by the liquidation threshold, resulting in 87.54%.