Leveraged Liquid Staking

How leveraged liquid staking strategies can work with LIDO and others.

With Stackfi , you are able to lever up staking as per your risk and debt [borrowed] asset preference to get access to true leveraged staking… But that’s just the tip of the iceberg. Beyond the leveraged AVAX, it’s the stAVAX you receive that enables composability across multiple more DeFi protocols. And each protocol enables you to earn even more APY.

Leveraged Staking Yields in stAVAX: The stAVAX is what you receive when you stake AVAX via Lido. It ideally maintains a peg against AVAX, but market volatility can cause it to lose peg. If that happens, your health factor might drop, especially if your debt asset is a stablecoin. Manage your risk accordingly.

The yield here comes from the rebasing stAVAX rewards. If those APYs exceed your borrowing costs, this makes the strategy attractive. It’s even better if you're AVAX-long relative to stablecoin debt (see Boosted Long/Short strategies).