Hypha Staked AVAXPrice

(STAVAX)

stAVAX is a Liquid Staking Token (LST) operating on the Avalanche blockchain. It's issued by the Hypha protocol, which was formerly known as GoGoPool. This innovative token allows individuals to participate in Avalanche's staking rewards while ensuring their underlying assets remain liquid. This liquidity means stAVAX can be actively used in various decentralized finance (DeFi) applications, offering both staking yield and financial flexibility. It acts as a representative token for staked AVAX, with its value appreciating over time due to accumulated rewards.

In 2024, the GoGoPool protocol underwent a significant rebranding initiative, changing its name to Hypha. As part of this rebranding, its associated liquid staking token, ggAVAX, was also updated and is now known as stAVAX. Users holding ggAVAX do not need to take any specific action to convert their tokens. The change is primarily cosmetic, involving only the name and logo. The underlying smart contract remains consistent, and your tokens will automatically be displayed as stAVAX in compatible cryptocurrency wallets and decentralized applications.

stAVAX operates on a unique reward-bearing model for distributing staking rewards. Unlike some other liquid staking tokens where your token balance increases, with stAVAX, the quantity of tokens in your wallet remains constant. Instead, the intrinsic value of each stAVAX token relative to AVAX progressively increases over time. This appreciation reflects the continuous accumulation of staking rewards generated by the underlying staked AVAX. Consequently, when you eventually redeem or swap your stAVAX for AVAX, you receive more AVAX than you initially deposited, representing your earned staking rewards.

Minipools are a foundational and innovative feature of the Hypha protocol, designed to make Avalanche validator operation more accessible. Traditionally, running an Avalanche validator requires a substantial 2,000 AVAX. However, Minipools enable node operators to launch a validator with a reduced personal stake of only 1,100 AVAX. The Hypha protocol then matches this operator's contribution with an additional 1,000 AVAX sourced from the pool of liquid stakers. This mechanism effectively pools resources, lowering the barrier to entry for node operators and expanding the decentralization of the Avalanche network, while also generating staking rewards for stAVAX holders.

stAVAX and GGP serve distinct roles within the Hypha ecosystem. stAVAX is the liquid staking token you receive when you stake your AVAX through the Hypha protocol. It represents your deposited AVAX along with any accrued staking rewards, providing liquidity while earning yield. Conversely, GGP is the protocol's native utility and governance token. It holds two primary functions: it is used as collateral by node operators participating in Minipools, ensuring their commitment and good behavior; and it empowers the community by facilitating participation in the Hypha DAO (Decentralized Autonomous Organization) for protocol governance and voting.

While Hypha has undergone multiple rigorous audits to enhance security, holding stAVAX does involve inherent risks. The primary concerns are smart contract risk and depegging risk. Smart contract risk refers to the potential for vulnerabilities or exploits within the protocol's underlying code, which could lead to loss of funds. Depegging risk arises if the market price of stAVAX on decentralized exchanges temporarily trades below its fair intrinsic value (which should be 1:1 with AVAX plus accumulated rewards). Although typically short-lived, market imbalances or liquidity issues could cause such temporary deviations. Users should always be aware of these fundamental risks in decentralized finance.