Staking for savAssets

Staking is the process of depositing your avAsset to earn yield. By staking, you exchange an avAsset (e.g., avUSD) for its corresponding yield-bearing savAsset (e.g., savUSD), which represents the Senior Tranche.

Step-by-Step Guide

1. Navigate to the Products Page: Go to the Products section of the app.

2. Choose Asset to Stake: Click the Stake button under your asset of choice.

3. Enter the Amount: Input the amount of the avAsset you want to stake. The app will show you an estimate of the savAsset you will receive in return.

4. Approve and Stake: Just like minting, you may need to approve the protocol's access to your avAsset first. After approval, click Stake and confirm the transaction in your wallet.

Your staked token balance (e.g., savUSD) will now appear on your dashboard. The value of this savAsset increases as the protocol distributes yield, meaning it can be redeemed for more of its underlying avAsset in the future.

To learn more about the different token types, visit the Core Tokens page.

Staking avUSD

How Staked Tokens' Value Grows

You might notice that when you stake, say, 1000 avUSD, you receive a slightly lower number of savUSD tokens, for example, 900 savUSD. Don't worry, the total value is exactly the same at that moment. The key is that your savUSD tokens (i.e., 900 savUSD) will grow in value over time as yield is earned by the protocol, eventually becoming worth more than your initial deposit.

A sample diagram to show how the staked tokens' value grows