# \[Proposal\] sAVAX collateral onboarding

**URL:** <https://forum.anchorprotocol.com/t/proposal-savax-collateral-onboarding/3279>\
**Category:** Mechanism\
**Created:** [March 10, 2022, 1:44pm UTC](https://forum.anchorprotocol.com/t/proposal-savax-collateral-onboarding/3279 "2022-03-10T13:44:30Z")\
**Posts on this page:** 1\
**Showing post:** 34

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**Author:** ![bitn8](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/bitn8/32/61_2.png) [@bitn8](https://forum.anchorprotocol.com/u/bitn8)\
**Post date:** [March 15, 2022, 12:26am UTC](https://forum.anchorprotocol.com/t/proposal-savax-collateral-onboarding/3279/34 "2022-03-15T00:26:07Z")

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sAVAX is actually being added without a taking a staking percent. The contracts would have to changed to do that and it would have to have it’s own interest rate, which it won’t. This model is more competitive to the new market space where liquid staking derivatives can be added to any saving and lending protocol very easily. Eventually, bLUNA, which is old and dated will be placed with stLUNA and lunaX. The theory is that borrowing against a LSD will demand a higher borrow rate because of higher utility. You could theorize that it would be something close to the base market borrow rate on the asset plus the staking rate.

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