BENQI has announced an exciting collab between themselves and Anchor Protocol. This collaboration will allow the exclusive usage of BENQI’s liquid staking token $sAVAX to provide a slew of benefits for users.
Users will be able to
- Earn additional yield by depositing on Anchor Protocol, both on Avalanche and Terra
- Borrow the Terra Stablecoin (UST) using sAVAX, and participate in other yield-bearing DeFi strategies on the ecosystem.
- Provide Avalanche users the chance to participate in the Terra Ecosystem
- Generate a flywheel effect between two of the most exciting ecosystems, Avalanche and Terra
This will provide a so far unseen flexibility and utility for the $sAVAX token, and provide multiple options for users when determining what to do with their staked tokens.
What Is BENQI Liquid Staking?
BENQI Liquid Staking is a non-custodial liquid staking solution that allows users to stake AVAX and receive sAVAX, an on-chain representation of delegation positions with Avalanche validators.
Avalanche x Terra
Users receive liquid sAVAX tokens by staking Avalanche’s token, AVAX on BENQI’s Liquid Staking Protocol. The sAVAX token provides users yield generated through rewards for securing the Avalanche network while simultaneously providing users the chance to freely utilize the token within powerful Decentralized Finance applications such as Anchor Protocol.
Joining bLUNA and bETH as collateral on Anchor, sAVAX opens up new synergies between two of the most exciting blockchain networks today. This cross-chain integration essentially creates inroads for decentralizing BENQI’s liquid-staked $sAVAX asset and the Anchor Markets.
Read into further details in the medium article Here