How to Deposit $sAVAX on Anchor Protocol

Did you know that $sAVAX is the only acceptable form of $AVAX tokens on Anchor Protocol?

Also, Anchor Protocol is one of the most lucrative places to stake your $AVAX tokens and get amazing APR. This, in essence, means that to stake your $AVAX tokens on Anchor, you need to first exchange your $AVAX for $sAVAX. And then deposit your $sAVAX tokens on Anchor Protocol.

This article provides an in-depth overview of how to acquire $sAVAX. And also the process of depositing your $sAVAX tokens on Anchor Protocol to earn amazing APR rewards.

Before we move on, let’s find out more about Anchor Protocol.

Brief Overview of Anchor Protocol

Anchor Protocol is a decentralized savings protocol. It is also popularly known for its relatively low-volatile yields. This is also because the protocol employs a unique system of combining staking rewards from top PoS blockchains to power its rate.

Anchor Protocol is made up of two (2) top participants, namely:

  • The Lender – Earns stable yields on their stablecoin holdings.
  • The Borrower – Stakes crypto assets as collateral to borrow stablecoin loans.
Step-by-Step Process on How to Stake $sAVAX on Anchor

As previously indicated, staking $sAVAX on Anchor is one of the simplest ways to earn rewards on your Avalanche ($AVAX) tokens.

1. The first thing to do is to set up your MetaMask wallet

While setting up your MetaMask wallet, it is also necessary to add Avalanche Network as a new network option.

2. Next, is to receive $AVAX tokens in your MetaMask wallet

There are basically two ways to do this.

  • By purchasing $AVAX from centralized exchanges (CEXs) like Binance, Huobi, OKEx, etc.
  • Also, by swapping $AVAX directly on networks like Binance (BNB) network.

3. Obtain $sAVAX using BENQI

$sAVAX is the only acceptable form of $AVAX token on Anchor Protocol. It is a liquid staking derivative of the $AVAX token. BENQI is the provider of $sAVAX. You simply need to liquid stake $AVAX tokens on BENQI to receive $sAVAX.


Source – BENQI

4. Deposit $sAVAX and start borrowing

Lastly, after getting the $sAVAX token, you can now deposit the token as collateral on Anchor Protocol. Users can also borrow the Terra USD (UST) algorithmic stablecoin with $sAVAX as collateral.

Anchor Protocol

Source – Anchor

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