Benqi ($QI)

BENQI offers users permission less lending and borrow via BLM as well as capital efficient staking via BLS. Both of which will be covered in detail below.

HOW IT WORKS

There are 2 different ways to use the BENQI protocol as listed above. Let’s dive into more detail on each of these.

BENQI Liquidity Market (BLM)

BLM allows users to lend, borrow, and earn interest with their digital assets by providing liquidity to the protocol. By providing liquidity users can earn passive income in the form of interest based on the provided assets market demand for borrowing.

Users can also use their deposited assets as collateral to borrow against. Interest earned by depositing funds offsets the accumulated interest rates from borrowing. The max that can be borrowed on a particular asset collateral factor is 40%. If AVAX for example is $100 the max that a user can borrow is $40 in other assets.

BENQI Liquid Staking (BLS)

BLS is a liquid staking protocol build on Avalanche that allows users to stake their $AVAX in return for $sAVAX (staked $AVAX). The protocol tokenizes the users staked $AVAX and allows them to freely use it within other DeFi dApps (Decentralized finance applications) see photo below.

BLS allows users to stake AVAX on the Avalanche C-Chain* without needing to stake on the Avalanche P-Chain*. This allows users to earn validating rewards from the P-Chain without running a full node or locking up $AVAX on a validating node. This provides a solution for freeing up locked capital in order to create greater capital efficiency within the Avalanche network.

Benefits of staking AVAX on BLS

No lock-up periods

Zero fees for depositing and withdrawing from BLS

Full control over your asset and associated accounts

Seamlessly stake your AVAX and start earning without needing to execute cross-chain transfers to the Avalanche P-Chain

Gain additional utility on your interest-bearing asset to be freely utilized within Decentralized Finance (DeFi).

BENQI x ANCHOR Exclusive sAVAX Integration

BENQI has collaborated with Anchor protocol to exclusively use BENQI’s liquid staking token $sAVAX on Anchor. With $sAVAX users can:

Earn additional yield by depositing on Anchor

Borrow the Terra Stablecoin ($UST) using $sAVAX, and participate in other yield-bearing DeFi strategies on the ecosystem.

Provide Avalanche users the chance to participate in the Terra Ecosystem

Generate a flywheel effect between two of the most exciting ecosystems, Avalanche and Terra

TOKENOMICS

$QI is the native token on the protocol and the governance token. The protocol will initially be governed by the founding team, and will eventually transition to a Decentralized Autonomous Organization (DAO). As part of the DAO, holders of the QI token will be able to initiate proposals and vote on issues that will steer the direction of the protocol.

A total of 45% or 3,240,000,000 QI tokens will be distributed to the community. The distribution will be done via:

Liquidity and Community Incentives

Liquidity Provider Incentives

QI token for Liquid Staking

With Avalanche Subnets ready to launch the $QI token will play an important part of providing subnets enhanced liquidity through Liquid Staking, validator bootstrapping and boosted DeFi rewards to liquidity providers.

This will be accomplished through $veQI. $veQI represents the $QI token locked up for a specified period of time. Users, builders, and DAO’s by acquiring $veQI will be able to direct staked $AVAX to bootstrap and support their favorite subnets. This means that $veQI can be directed to validate specific subnets in order to receive subnet rewards, get boosted $QI rewards and more.

TEAM

JD Gagnon is one of its co-founders, along with Hannu Kuusi and Alexander Szul. Kuusi has over two decades of ICT experience and has been a heavy crypto fan since the early days of Bitcoin. Szul manages the development of the BENQI liquidity market platform. With the help of crypto advocates Jason Tuang – a DeFi specialist with financial knowledge – and Hansen Niu – specialized in corporate strategy – the BENQI team started taking shape.

These five individuals were joined by DeFi enthusiast and former small enterprise owner Dexter Lee and blockchain operations management specialist Dan Mgbor. Together, they created BENQI.

Below is a list of BENQI’s strategic partners.