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How to Stake Avalanche (AVAX) for Maximum Yield

· 5 min read

In this lesson, we’ll go through a practical, step-by-step demonstration of how to stake Avalanche (AVAX) — the native token of the Avalanche blockchain — to achieve maximum yield through consensus staking with minimal risk and high reliability.

A Quick Warning About Wallet Scams​

Before we begin, let’s address a common phishing scam that often targets AVAX users.

Sometimes, unknown tokens may suddenly appear in your wallet — for example, one called “eight” or something similarly random.
These are fake tokens sent by scammers who hope you’ll click the embedded link or connect your wallet to a malicious site, often disguised as a “casino” or “airdrop” project.

Do not interact with these tokens.
Never click links or connect to unknown websites.
Simply ignore or hide them from your wallet interface.

This scam relies on curiosity — but connecting your wallet to these fake sites can expose your private keys or trigger malicious transactions.

Staking Overview​

Now, let’s move on to staking AVAX.

Avalanche uses a Proof of Stake (PoS) consensus mechanism.
By staking AVAX, you help secure the network and earn staking rewards in return.

  • Average yield: around 7–8% per year
  • Unstaking period: about 15 days
  • Minimum stake: 25 AVAX if running your own node, but you can stake any amount via liquid staking providers.

For this demonstration, we’ll use Benqi, one of the most popular and trusted liquid staking platforms on Avalanche.

Step 1 — Access the Benqi Liquid Staking App​

  1. Visit the official Benqi app (link in the lesson description).
  2. Go to the Apps section and select Liquid Staking.
  3. Connect your wallet — I’m using Core Wallet, but you can also use MetaMask.
  4. Make sure you’re on the Avalanche C-Chain network.

Once connected, you’ll see an interface similar to Ethereum’s Lido dashboard, where you can stake AVAX and receive sAVAX (staked AVAX) in return.

Step 2 — How Benqi Staking Works​

The process is similar to Ethereum’s liquid staking, but with one key difference:

  • In Ethereum staking, your token balance increases over time (e.g., stETH grows in quantity).
  • In Avalanche staking, your token quantity stays the same, but the price of sAVAX gradually increases relative to AVAX.

In other words:

Your sAVAX tokens remain constant, but each one becomes worth more AVAX over time.

This is how staking rewards are reflected in Avalanche.

Step 3 — Stake Your AVAX​

  1. Click Stake in the Benqi interface.
  2. Enter the amount you want to stake — for example, 30 AVAX.
  3. Confirm the transaction in your wallet.

The transaction fee on Avalanche is very low — around $0.03, roughly 100x cheaper than Ethereum gas fees.

After the transaction is confirmed, staking becomes active.
Your wallet will now show a balance such as 28.86 sAVAX (depending on the current conversion rate).

Step 4 — How Rewards Are Earned​

The quantity of sAVAX in your wallet stays the same, but its market value increases as staking rewards accumulate.

If the average staking yield is 7% per year, then after one year:

  • The price of sAVAX will be roughly 7% higher than when you first staked.
  • You can unstake and receive about 7% more AVAX than your initial deposit.

Example:

You stake 28 AVAX → receive 28.86 sAVAX.
After one year, you unstake and get the equivalent of 31 AVAX due to price appreciation.

Rewards accumulate automatically — you don’t need to claim them manually.

Step 5 — Unstaking or Selling sAVAX​

There are two ways to convert your sAVAX back into AVAX:

Option 1 — Official Unstaking (Benqi)​

  • Use the Unstake function in the Benqi app.
  • Wait through the 15-day unbonding period while your AVAX is released.
  • After that, you can withdraw both your principal + rewards.

This is the most profitable method, as you get the full reward rate with no discount.

Option 2 — Instant Liquidity (DEX Swap)​

If you want your funds immediately:

  • You can swap sAVAX → AVAX on decentralized exchanges (DEXs) such as 1inch or Trader Joe.
  • The exchange rate will be slightly lower — typically 0.5–1% less than the official rate.
  • You’ll receive your AVAX instantly, without waiting 15 days.

This is ideal if you need to quickly exit your position or move funds to another network.

Step 6 — Manually Adding sAVAX to Your Wallet or DEX​

By default, some wallets or DEXs (like 1inch) might not display sAVAX.
If that happens, you can add it manually:

  1. Open the Avalanche Explorer.
  2. Search for the token sAVAX.
  3. Copy its contract address.
  4. Go back to your wallet or DEX app.
  5. In the “Add Token” or “Import” section, paste the contract address.
  6. Confirm and import the token.

Now, sAVAX will appear in your interface, allowing you to swap or track it properly.

Comparing Unstaking Options​

MethodWaiting PeriodExchange RateYield RetainedRecommended For
Benqi Unstake~15 days1:1 (official rate)100%Long-term holders
DEX SwapInstant~0.99:1~99%Short-term or active users

For most investors, official unstaking offers maximum yield, but DEX swaps provide faster liquidity when needed.

Step 7 — Advanced Yield Strategies​

If you want to go beyond passive staking, you can combine liquid staking with other DeFi strategies, such as:

  • Lending sAVAX on money markets for extra yield.
  • Providing liquidity in AVAX/sAVAX pairs on DEXs.
  • Using sAVAX as collateral to borrow stablecoins or other assets.

However, these strategies involve higher risk, so they’re best suited for users familiar with DeFi mechanics and smart contract interactions.

Summary​

  • Consensus staking yield: ~7–8% annually.
  • Unstaking period: ~15 days.
  • Liquid staking provider: Benqi (trusted and widely used).
  • Reward mechanism: sAVAX price increases over time.
  • Fees: Transaction cost ≈ $0.03.
  • Best for: Long-term AVAX holders seeking reliable passive income.

Two main options to exit:

  1. Unstake via Benqi — full yield, delayed liquidity.
  2. Swap on a DEX — instant liquidity, small discount.

Both methods provide access to Avalanche’s official staking rewards, with minimal technical barriers and significantly lower costs than staking on Ethereum.

These materials are created for educational purposes only and do not constitute financial advice.