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Introduction to BENQI

What is BENQI?

BENQI is a Decentralized Finance protocol built on Avalanche. It consists of the BENQI Liquidity Market (BLM) and BENQI Liquid Staking (BLS).
BENQI Liquidity Market (BLM) enables users to effortlessly lend, borrow, and earn interest with their digital assets. Depositors providing liquidity to the protocol earn yield, while borrowers are able to borrow in an over-collateralized manner.
BLM is permissionless to use and allows DeFi users to:
  • Instantly supply to and withdraw liquidity from a shared liquidity market
  • Instantly borrow from a liquidity market using their supplied assets as collateral
  • Have a live and transparent view of interest rates around the clock based on the asset's market supply and demand
BENQI Liquid Staking (BLS) is an Avalanche liquid staking solution that tokenizes staked AVAX. By tokenizing AVAX through liquid staking, users are given the ability to use, swap or collateralize the yield-bearing asset within Decentralized Finance applications.
BLS is a capital efficient staking product that allows Avalanche users to:
  • Freely transfer locked up capital (staked AVAX) staked in validators in securing the Avalanche network
  • Gain additional utility on their yield-generating asset by utilizing it within Decentralized Finance by trading it or using it as collateral
  • Seamlessly stake their AVAX on the Avalanche Contract Chain (C-Chain) with no tedious cross-chain transfers or server hosting.

Storage of funds

Funds are administered by Smart Contracts.

Risks

No protocol within the blockchain space can be considered entirely risk free. The risks related to the protocol may potentially include Smart Contract risks and Liquidation risks. The team has taken necessary steps to minimize these risks as much as possible by undergoing audits and keeping the protocol public and open sourced.