Restaked sAVAXPrice

(RSAVAX)

rsAVAX is a Liquid Restaking Token (LRT) on the Avalanche network. It represents a tokenized version of sAVAX that has been deposited into specialized vaults. This asset allows users to earn native staking rewards while simultaneously securing other Avalanche Layer 1 (L1) networks. By using this token, participants can maintain liquidity for their assets while earning multiple layers of rewards, effectively allowing their capital to perform several roles across the network at once.

sAVAX is a Liquid Staking Token (LST) representing AVAX staked on a liquid staking protocol to secure the primary Avalanche network. In contrast, rsAVAX is a Liquid Restaking Token (LRT) that takes those staked assets and 'restakes' them as collateral in a restaking marketplace. While sAVAX provides rewards from the primary network, rsAVAX earns an additional layer of rewards by securing secondary Layer 1 chains. Essentially, rsAVAX is a more advanced iteration of a staked asset that unlocks further utility and incentive layers.

The yield for rsAVAX is generated through a 'stacked' reward strategy. This includes the base staking yield from the underlying liquid staking token, interest from integrated lending protocols, and rewards for providing security to various Avalanche Layer 1 chains. Additionally, users can earn ecosystem loyalty points. These vaults are typically designed to be auto-compounding, meaning the protocol automatically collects these various rewards and reinvests them to increase the value of the token over time without requiring manual intervention from the holder.

Holders of rsAVAX can accumulate two types of loyalty points. The first type tracks contributions to the security of the restaking marketplace, while the second type relates to participation in the vault strategies managed by the protocol providers. These points systems are designed to reward long-term users and may lead to future token distributions or specific ecosystem incentives. This adds an additional layer of potential value beyond the standard yields generated by staking and restaking activities.

Users should consider several risks when holding rsAVAX. Smart contract risk is a factor, as the asset interacts with multiple protocol layers simultaneously. There is also operator risk; if validators securing the Layer 1s face issues, it could affect reward generation. Liquidity risk is another consideration, as users needing to exit large positions quickly rely on the depth of secondary markets on decentralized exchanges. While security reviews are conducted and protections for principal deposits are typically in place, users should always consult the latest audit reports before participating.

The Avalanche 9000 upgrade significantly reduces the cost of launching new Layer 1 chains. rsAVAX is a key component of this evolution because it provides 'security for hire' for these new networks. Instead of projects needing to establish their own validator sets, they can utilize the pooled collateral provided by rsAVAX. This infrastructure allows new chains to launch with immediate security, while rsAVAX holders benefit from the additional rewards generated by securing these emerging projects within the network.