How to use BenqiFinance $sAVAX as collateral on Alnchor protocol to get a stablecoin $UST loan! Get that sweet 19.5% APY

LET'S EXPLAIN WHAT IS STAKING?
Staking is how Proof of Stake blockchains secure the network. Stake the token (i.e. $AVAX) in a validator node. You don’t have custody of your tokens during that time. For “lending” the network your tokens, you get more.

WHAT IS LIQUID STAKING?

BenqiFinance collects $AVAX through a smart contract. They distribute your $AVAX to validators and collect the rewards. You get $sAVAX in return. The value of $sAVAX goes up over time compared to $AVAX. Redeem your $sAVAX for $AVAX at any time.

Good. You have your $sAVAX.

1) Go here: https://app.anchorprotocol.com/borrow

Select Avalanche in the top right.

Click Provide. Choose $sAVAX amount. Click Proceed. Sign the transactions.

You just deposited your $sAVAX as collateral!

2) Now we borrow against our collateral

Click Borrow on the top of the page and move slider to 25%.

WARNING: You’re using leverage, your $sAVAX will get sold if the price drops below the price “Estimated sAVAX liquidation price” in the UI.

You have a $UST loan in your wallet

3) Go here: https://app.anchorprotocol.com/earn

Click Deposit to deposit your $UST.

4) You’re done! You’re making more on your $UST than the loan is costing you!

But , if you're hungry for more rewards then follow me down the lane

Go to the Borrow page and withdraw 90% of the total loan amount in $UST.

5) Go to CurveFinance
here: https://avax.curve.fi/factory/55

Swap your $UST for $USDC.

6) Go to traderjoe

Swap all of your $USDC for $sAVAX.

Deposit your $sAVAX on the borrow page again.

7) Your loan % is lower because you deposited more collateral.

You can crank it back up to 90% and do the whole thing over again.

Just make sure you have enough money sidelined to repay some of the loan if $AVAX has a hard dip.

I'd recommend ending below 50%.

Hope you found this helpful!

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