Stable Jack

aUSD

built on Benqi’s sAVAX

sAVAX is an LST asset that BENQI issues on the Avalanche network. AVAX staked for sAVAX is used to secure the network and accrues staking rewards.

This market allows investors to earn leveraged sAVAX yield while maintaining a USD-pegged position.

Total Value Locked

APY

Deposit:Balance: 0 aUSD

Staked aUSD Balance

aUSD Balance in Wallet

If the CR drops below 147%, Rebalance Pool will be activated.Now : 0.00 %

How Does This Market Work?

Yield vs Volatility Market

The yield and volatility of sAVAX are exchanged between xAVAX and aUSD.

Correlated Asset:

Receipt Asset:

Overview

Technical Explanation

Users exchange the yield and volatility of the sAVAX. xAVAX holders give up on the yield of sAVAX in exchange for more volatility, while aUSD holders give up on the price action of AVAX in exchange for leveraged sAVAX yield.

Market Expectation of Users

Users who want to earn reliable and above-market yields can mint aUSD.

The Source of Leveraged Yield

The source of leveraged yield is the xAVAX holders who forgo their sAVAX yield.

Risks

Depeg: In case of sAVAX depeg, users may incur losses on Stable Jack.

Counterparty Risk: Risks include any smart contract hacks against BENQI, as well as slashing risks.

Smart Contract Risk: Like every other DeFi protocol, Stable Jack is built on smart contracts, which carry inherent risks.

Additional Info

Mint/Redeem Fees: There is no mint fee but a 0.05% redeem fee.

Incentives: There are no additional incentives.

Disclosures

Rebalance Pool: If the collateralization ratio (CR) falls below 160%, no new aUSD can be minted. If the CR drops below 147.5%, a portion of the aUSD deposited by users into the Rebalance Pool will be automatically redeemed for sAVAX. This sAVAX will be returned to the Rebalance Pool, where users can later claim it. The purpose of this mechanism is to restore the CR back to 160%, and the underlying assets remain owned by the users.
No Lock Up: There is no lockup period for the assets; users can easily mint/redeem the assets without delay.

Deposit:

Balance: 0 sAVAX

Receive:

aUSD