The $AVAX tokens are paid out in the BENQI X ecosystem, which has two smart contracts on both blockchains, via bridges.
Investors freeze AVAX on Avalanche, receive a portion of the profits from the PoS pledge, and are eligible to issue $AVAX on the Terra blockchain. The frozen liquidity can therefore be reused in other DeFi projects.
The Anchor protocol is ranked #1 on the Terra blockchain in terms of the number of TVL investments it attracts. The developers of the smart contract guarantee the highest placement return for UST, an algorithmic stable coin issued based on the security of LUNA. It is a Terra utility token that is destroyed or issued by the smart contract to keep UST dollars pegged to 1:1.
During Avalanche's freeze of AVAX, $AVAX holders will be able to access loans at UST. These funds can be reinvested or invested in security tokens available in the Mirror protocol. It supports access to the stock market in the Terra ecosystem and the possibility of holding shares, the income of which can pay the interest on the loan.