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Introduction to BENQI
BENQI is a Decentralized Finance (DeFi) liquidity market protocol, built on Avalanche. The BENQI Protocol consists of: 1. BENQI Liquidity Market (BLM) 2. BENQI Liquid Staking (BLS) The BENQI Liquidity Market (BLM) protocol enables users to effortlessly lend, borrow, and earn interest with their digital assets. Depositors providing liquidity to the protocol may earn passive income, while borrowers are able to borrow in an over-collateralized manner. The BENQI Liquid Staking (BLS) protocol is a liquid staking solution that tokenizes staked AVAX to grant users the ability to utilize the yield-bearing asset within Decentralized Finance applications.

Why BENQI?

Decentralized Finance (DeFi) has grown substantially in the last few years. As most of DeFi's activity is currently conducted on Ethereum, the network has started to experience congestion problems that have resulted in high network fees. This has proven to be a significant barrier for both old and new users with smaller capital to justify engaging in DeFi.
BENQI aims to alleviate these problems by providing a suite of DeFi products on a highly scalable and decentralized platform. With a focus on approachability, ease of use, and low fees, BENQI aims to democratize access to decentralized financial products by providing users access to Permissionless lending and borrowing (via BLM) where DeFi users can:
  1. 1.
    Instantly supply to and withdraw liquidity from a shared liquidity market
  2. 2.
    Instantly borrow from a liquidity market using their supplied assets as collateral
  3. 3.
    Have a live and transparent view of interest rates around the clock based on the asset's market supply and demand
Capital efficient staking product (via BLS) where Avalanche users can:
  1. 1.
    Freely utilize locked up capital staked in validators in securing the Avalanche network
  2. 2.
    Gain additional utility on their yield-generating asset by utilizing it within Decentralized Finance
  3. 3.
    Seamlessly stake their AVAX on the Avalanche Contract Chain (C-Chain) with no lock-up periods or tedious cross-chain transfers

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.