Stake QI and Vote with veQI
So, you have supplied tokens and provided liquidity to Benqi and now have QI tokens as your reward. The question is, “What do I do with my QI tokens?“
The four most obvious choices are to let them sit idle on the blockchain, swap them for a different token, provide them as liquidity on a DEX, or stake them back on Benqi.
- Allowing them to sit idle on the blockchain is a great option for those who prefer full liquidity. Remember, the tokens are never in your wallet. They’re always on the blockchain. Your wallet holds the keys to unlock your address and move your tokens.
- If you don’t care about your QI tokens and believe a different token may wind up being a more valuable asset, you might swap them.
- Lending them out to liquidity pools is a way to generate income from your tokens.
- Staking your QI tokens on the Benqi platform gives you vote-escrowed QI (veQI) as your “receipt.” This veQI allows you to direct where Benqi stakes its AVAX and boost the APY of your favorite validators.
In this article, we will show you how to stake QI tokens on the Benqi platform and then vote for your favorite validator.
Why you should stake your QI tokens
There is additional risk when liquid staking on any platform. You not only have the risks associated with the underlying crypto, but also absorb the risks of the liquid staking platform. If the liquid staking platform is hacked the derivative tokens will plummet in value as people scramble to sell them.
Because of these risks, we usually tell the average crypto investor not to liquid stake more than 25% of your portfolio. DEGENS often liquid stake their whole bag as they actively look to generate as much yield as possible and are comfortable with the risk.
If you follow our advice, you would have 75% of your AVAX traditionally staked with a validator. Staking your QI and then using your veQI to vote can help your validator and boost their staking yield. That means you get more AVAX tokens for staking with them!
Why you should vote using your veQI tokens
Remember, staking QI gives you veQI, which is a representation of your voting power. Voting with your veQI tells the Benqi platform where you would like them to stake the AVAX that people deposit for the liquid staking derivative, sAVAX.
By voting, you turbocharge the staking yield of your validator. That means more AVAX tokens in your pocket!
How to stake Benqi (QI) tokens
Here’s a step-by-step QI staking tutorial. We assume you already have QI tokens. If not, check out our Core wallet AVAX liquid staking tutorial or Metamask AVAX liquid staking tutorial to see how to get some.
1. Navigate to https://staking.benqi.fi/veqi/stake and connect your wallet. Then, click the “Stake” button. (see image below)
2. Enter the number of QI tokens you would like to stake and then click “Approve.” (see image below)
3. Approve the QI token for transfer in your wallet. Set the spending cap to the amount of QI you are going to stake and no more than that. Then click, “Next” or “Approve” depending on the wallet you are using. (see image below)
A confirmation will popup to show you that your QI tokens are now approved to be moved from your wallet address. (see image below)
4. The “Confirm Stake” window will appear. Click the “Stake” button. (see image below)
5. If necessary, click “Confirm” in your wallet. Core wallet may not ask you to confirm. (see image below)
6. A popup will appear as your transaction waits for block confirmation. A second popup will then appear verifying that the QI staking transaction was successful. (see images below)
7. Click the X in the top right corner of the popup to close it. This will take you back to the QI staking page. You will see that your QI tokens are staked. Now, Click “Vote.” (see image below)
8. Enter the alphanumeric portion of the validator Node ID in the box. (see image below)
Atlas Staking’s Node ID is: MmTfUacXsPdKryR3WkVteMqoFvyxEdYf4. Unfortunately, validator names are not listed and you must have their node ID. You can verify our Node ID on Avascan.
9. Check the box next to our Node ID and then click “Vote.” (see image below)
10. The Vote for validators popup appears. If Atlas Staking is your only validator, enter 100% and then click “Vote.” (see images below)
11. If you are using Metamask, approve the voting transaction in your wallet. This second approval may not be necessary in other wallets. (see image below)
A popup will then appear verifying that your vote was successful. (see image below) This means that Benqi will stake AVAX with us because of you. Thanks so much for voting for us! Benqi’s stake will simultaneously increase the APY for those who are staking AVAX with us.
12. Click the X in the top right corner of the popup to close it. This will take you back to the QI voting page. You will see that your veQI tokens are voting for Atlas Staking. That’s it! (see image below)
To unstake your QI tokens simply follow the process in reverse.
Thanks for staking with us!
The Atlas Staking team
Frequently Asked Questions
Benqi is the most popular liquid staking protocol for AVAX tokens on the Avalanche network. Users stake their AVAX with Benqi and receive sAVAX tokens in return. The sAVAX tokens accrue AVAX staking rewards by simply sitting on-chain. Additional yield can be earned by lending out the sAVAX tokens to various DeFi platforms, including Benqi.
Users who deposit their sAVAX tokens on Benqi earn their native QI token. The QI token can then be staked to boost validator rewards.
QI is Benqi’s utility token and is needed to transact on the platform (lending and borrowing). The token is also used for voting on Benqi proposals. QI can also be staked to earn more QI as rewards. Staked QI can be used to vote for your favorite validators and increase their AVAX staking yield.
Staking QI tokens supports the Benqi protocol, earns you more QI tokens, and allows you to vote for your favorite validators. When you vote for a validator, you direct where Benqi stakes AVAX.
Stake QI tokens on the Benqi staking page.
Benqi is a protocol on the Avalanche network.
You can add the QI token to Metamask by clicking the link in the Benqi menu.
Nothing we say is financial advice or a recommendation to buy or sell anything. Cryptocurrency is a highly speculative asset class. Staking crypto tokens carries additional risks, including but not limited to smart-contract exploitation, poor validator performance or slashing, token price volatility, loss or theft, lockup periods, and illiquidity. Past performance is not indicative of future results. Never invest more than you can afford to lose. Additionally, the information contained in our articles, social media posts, emails, and on our website is not intended as, and shall not be understood or construed as financial advice. We are not attorneys, accountants, or financial advisors, nor are we holding ourselves out to be. The information contained in our articles, social media posts, emails, and on our website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation. We have done our best to ensure that the information provided in our articles, social media posts, emails, and the resources on our website are accurate and provide valuable information. Regardless of anything to the contrary, nothing available in our articles, social media posts, website, or emails should be understood as a recommendation to buy or sell anything and make any investment or financial decisions without consulting with a financial professional to address your particular situation. Atlas Staking expressly recommends that you seek advice from a professional. Neither Atlas Staking nor any of its employees or owners shall be held liable or responsible for any errors or omissions in our articles, in our social media posts, in our emails, or on our website, or for any damage or financial losses you may suffer. The decisions you make belong to you and you only, so always Do Your Own Research.
