Staking

This page covers staking requirements, fee policy, unlock timelines, and links to both the contracts/spAVAX.sol implementation and front-end guides so you can stake with confidence.

The Sparrow Finance Staking Protocol allows you to deposit an asset and mint an sp token — a liquid staking token that represents your share of the pooled validator balance.

Your deposited asset is delegated to validators to help secure the network. As validators earn rewards, 92% of those rewards are added back to the total pooled balance, steadily increasing the exchange rate of spAVAX to AVAX for every holder over time. The remaining 8% supports the protocol through a 5% allocation to DAO governance and 3% to ongoing development.

You can simply hold spAVAX to earn rewards automatically.