Is BENQI Staked AVAX Safe?
Risk Grade: B (24/100)
BENQI Staked AVAX is rated as moderate risk — some novel mechanisms, generally well-understood.
Lower risk for liquid staking — established protocol with no exploits and simple design, but whale concentration and 15-day unbonding create exit liquidity risk during stress
BENQI Staked AVAX (sAVAX) is a liquid staking token that lets you earn Avalanche staking rewards while keeping your AVAX usable in DeFi. You deposit AVAX and receive sAVAX, which grows in value as staking rewards accrue. With over 23 million AVAX staked and a clean security track record, it earns a B+ grade. The main risk is that selling sAVAX quickly during a crash means accepting a discount since unstaking takes 15 days.
TVL
$229M
Mechanisms
5
Interactions
4
Value Grade
D-
Key Risks for BENQI Staked AVAX Users
If AVAX crashes and everyone wants to unstake at once, you face a 15-day wait. Selling sAVAX on the open market means accepting a price below what it is actually worth
The top 25 holders own 96.4% of all sAVAX. If even a few of them sell at the same time, there is not enough buyer demand to absorb it without a major price drop
Your staked AVAX is moved across chains using a special bridge. If the bridge security is ever compromised, all staked funds could be at risk
Top Risk Factors
- •sAVAX can trade at a significant discount to AVAX during stress events because of the 15-day unbonding period, creating de-peg risk
- •Cross-chain MPC bridge between C-Chain and P-Chain introduces cryptographic custodial risk for all staked AVAX
- •Concentration risk: top 25 holders control 96.4% of sAVAX supply, making exit liquidity fragile
Risk Score Breakdown
BENQI Staked AVAX's highest risk area is Vitality Risk (6/10). Here's how each dimension contributes to the overall 24/100 score:
Read the Full BENQI Staked AVAX Risk Report
This protocol has 2 collapse scenarios. 1 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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