Benqi’s liquid staking service for AVAX has already attracted $92M in TVL according to Defilama at the time of writing.
The TraderJoe sAVAX-AVAX LP holds $114M whilst the Pangolin LPs seems to have $43M in total value.
Down the line users using sAVAX or sAVAX LP would be willing to pay a higher interest rate generating more fees for sSPELL stakers while essentially making the yield self-repaying over time.
Going a step further would be to work with a protocol such as Yield Yak to tokenize the YY LP position and use that as collateral but given that the tokenization does not seem to be builtin to enable this permissionlessly, it’s a lower priority.