To use the protocol, the user deposits their preferred asset that is accepted by the protocol. Users will be able to earn interest based on the asset's market demand for borrowing. Additionally, deposited assets can be used as collateral to allow the user to borrow other assets. Interest earned by depositing funds offsets the accumulated interest rates from borrowing.
Additional token pools will be added as the platform grows. The additions into the protocol will be initially decided by the core team and as the protocol's governance transitions into a Decentralized Autonomous Organization (DAO), additional pools will be approved based on community votes and proposals using the QI governance token.
qiTokens (qiAVAX, qiUSDC, qiQI, etc.) Depositors will be given tokenized yield-bearing tokens (qiTokens) which will be required to withdraw supplied assets from the BENQI Liquidity Market when required.
qiTokens can be transferred and traded as any other crypto-asset on Avalanche.
- 1.Click on the
Marketstab on the menu and click on
- 2.Select the type of asset from the drop box menu in the
- 3.Enter the desired amount to deposit and click
- 4.Once the transaction is confirmed, the deposit is successfully registered and it starts earning interest.
- 5.qiTokens will be deposited into your wallet as a representation of your supplied asset into the protocol
There are no minimum or maximum deposits imposed. Users can deposit any amount.
The first deposit of an asset will require an approval transaction
- 1.To withdraw, locate the
Withdrawbutton under the
Supplydashboard and click on
Withdrawon the selected asset.
- 2.Select the amount to withdraw and submit the transaction.
Users can withdraw assets as long as those funds are not actively being used to borrow and withdrawal of those assets would not cause a liquidation on your loans.
Users with multiple different assets being deposited are able to select assets to be used as collateral. This can be enabled/disabled through the
Collateralslider in the
Depositors will receive continuous earnings (interest) on their assets that algorithmically adjusts based on market conditions. Each asset has its own market of supply and demand with its corresponding APY (Annual Percentage Yield) which changes over time.
The qiToken is a representation of the user's asset balance supplied to the BENQI protocol. It is received in the wallet for supplying assets to the protocol and functions to accrue value relative to the original asset through the token's interest rate.
qiTokens minted will be based on the underlying asset supplied to the protocol (e.g: qiAVAX, qiLINK, qiWBTC, etc).
qiTokens are convertible into an increasing amount of its original asset, even while the number of qiTokens in the wallet remains the same.