Avalanche Ecosystem Markets

Avalanche Ecosystem Markets on BENQI provide a lending and borrowing environment separate from the Core Markets, specifically designed to support more exotic or volatile assets within the Avalanche ecosystem. By isolating these markets, BENQI allows users to engage with a wider variety of assets while maintaining risk management and protecting the core protocol from potential liquidity risks.

Each isolated market operates independently, ensuring that risks from one market, such as volatility or liquidity issues, do not affect others or destabilize the Core Markets.

Key Features

• Supporting Long-Tail and Exotic Assets: Certain assets may not necessarily meet the liquidity or risk standards of BENQI's Core Markets. Avalanche Ecosystem Markets allow developers to introduce new markets as they please.

• Collateralization and Interest Rate Models: Just like in Core Markets, configurations for isolated markets are proposed and managed by Chaos Labs. This includes strict rules regarding collateralization ratios and interest rates, tailored for each individual asset to ensure optimal risk management.

• USDC Loans Only: Users can supply assets as collateral in an isolated market but may only borrow USDC. This prevents potential market manipulation or liquidity crunches that could hard ecosystem liquidity.

• Multi-Asset Repayments: Loans can be repaid with multiple ERC20 tokens, provided they have sufficient liquidity. This ensures users have greater flexibility when managing their loans.

As with the Core Markets, the configurations are proposed by Chaos Labs (the team behind BENQI).

We recently introduced our RWA Platform, where each lending pool is structured as an Avalanche Ecosystem Pool. This platform expands BENQI's lending capabilities by integrating real-world assets into the Avalanche ecosystem. For more information visit RWA PLATFORM