Core Markets
Last updated
Last updated
Core Markets on BENQI represent the primary lending and borrowing pools for widely used, highly liquid assets such as AVAX, QI, USDC, DAI, WBTC, and more.
Users can deposit assets into Core Markets to earn interest, which is determined algorithmically based on the supply and demand of each asset. These deposits also serve as collateral, allowing users to borrow other assets within the platform. Borrowing limits are determined by the collateralization ratio of the deposited assets, ensuring that all loans are backed by sufficient collateral to maintain market stability.
Collateral Flexibility: Users can supply assets to the Core Markets as collateral and borrow a variety of tokens, including stablecoins and more volatile assets.
Market Stability: Core Markets are designed with broad liquidity and lower risk, ensuring stability for assets that are widely traded and used across the Avalanche ecosystem.
Borrow Any Asset: In Core Markets, users can borrow any available asset using their deposits as collateral, providing flexibility across the platform. In contrast, Avalanche Ecosystem Markets only allow borrowing stablecoins like USDC.
Users should always be cautious about the health of their loans. For example, if they lend out an asset like AVAX and borrow against it, a sudden drop in AVAX’s value could lower their collateral ratio, putting them at risk of liquidation. To avoid this, users may need to repay part of the loan or add more collateral to maintain a healthy loan position.
We cover this in greater depth in Health & Liquidations