BENQI

BENQI (QI) is a decentralized non-custodial liquidity market protocol and a liquid staking solution built on the Avalanche blockchain. It allows users to lend, borrow, and earn interest on their digital assets. The BENQI Liquidity Market (BLM) enables liquidity providers to earn yield, while borrowers can take out loans in an over-collateralized manner. BENQI Liquid Staking (BLS) tokenizes staked AVAX, allowing users to utilize their yield-bearing assets within DeFi applications without lock-ups or cross-chain transfers.

• Total Supply:

• The total supply of QI tokens is capped at 7,200,000,000.

• Initial Allocation:

• 45% of QI tokens are distributed to the community, 10% to the team, 15% to the Treasury for incentivizing partnerships, and 5% for providing exchange liquidity.

• Purpose:

• QI tokens are used for governance, allowing holders to propose and vote on improvements to the protocol. They also serve as utility tokens within the BENQI ecosystem.

As of today #{today’s date}, the price of BENQI is ₹1.32 INR or 0.01525 USD, with a 24-hour trading volume of 4381273.94 USD. The market capitalization for BENQI is 74798282.95USD. The circulating supply is 4961773747 BENQI, with the total supply also being 7200000000 BENQI.

Pros:

• DeFi Integration:

• BENQI integrates with DeFi, allowing users to lend, borrow, and earn interest on their assets.

• Liquid Staking:

• The BLS allows for capital efficiency by enabling users to stake AVAX and receive a yield-bearing asset that can be used within DeFi.

• Avalanche Network:

• Built on Avalanche, BENQI benefits from high scalability, low fees, and compatibility with popular wallets.

• Governance:

• QI token holders have a say in the protocol’s direction through governance votes.

• Community Distribution:

• A significant portion of QI tokens is allocated to the community, promoting widespread participation and engagement.

Cons:

• Market Volatility:

• As with all cryptocurrencies, QI is subject to market volatility, which can lead to price fluctuations.

• Smart Contract Risks:

• Users face risks associated with smart contracts, including potential bugs or vulnerabilities.

• Regulatory Uncertainty:

• The evolving regulatory landscape for cryptocurrencies could impact BENQI’s operations.

• Competition:

• BENQI operates in a highly competitive DeFi space with numerous other lending and staking protocols.

• Complexity for New Users:

• The complexity of DeFi protocols can be a barrier to entry for new users.

• Innovative DeFi Solutions:

• BENQI’s liquid staking and lending protocols offer innovative solutions within the DeFi space.

• Avalanche Ecosystem:

• Participation in the growing Avalanche ecosystem, known for its speed and low transaction costs.

• Governance Participation:

• Investment in QI tokens allows for participation in the governance of the protocol, influencing its future.

• Community Focus:

• The token distribution strategy focuses on community engagement and protocol health.

• Strategic Partnerships:

• BENQI has secured strategic investments and partnerships, indicating confidence in its long-term potential.

• First DeFi Lending on Avalanche:

• BENQI claims to be the first DeFi lending project on the Avalanche platform, setting it apart from other protocols.

• Liquid Staking Solution:

• The BLS provides a unique solution for AVAX staking, allowing users to unlock and utilize their staked assets.

• Deep Liquidity and Connectivity:

• BENQI provides deep liquidity for borrowing and seamless asset transfer to other networks and exchanges.

BENQI addresses the problem of capital inefficiency in staking and the lack of accessible DeFi lending solutions on the Avalanche network. It enables users to unlock the value of staked AVAX and provides a platform for lending and borrowing with low fees and high scalability.

JD Gagnon, Hannu Kuusi, and Alexander Shul founded BENQI. JD Gagnon, the CEO, has a background in finance and accounting and has created the Velox algorithmic trading platform. Hannu Kuusi has experience in building infrastructure for fintech and military applications, while Alexander Szul manages the development of the BENQI liquidity market platform.

• ICO Price:

• The private sale price was $0.0055 per QI token.

• Listing Date:

• The protocol launched its QI token on 28th April 2021.

• Initial Allocated Units:

• 1,080,000,000 QI tokens were sold during the private sale, which is 15% of the total supply.

• Market Risk:

• The cryptocurrency market is highly volatile, and QI’s price can fluctuate widely.

• Regulatory Risk:

• Changes in regulations could adversely affect the operation and value of QI tokens.

• Smart Contract Security:

• Potential vulnerabilities in smart contracts could lead to loss of funds.

• Competitive Landscape:

• The DeFi space is crowded, and BENQI faces stiff competition from other protocols.

• Adoption Risk:

• The success of BENQI depends on widespread adoption within the DeFi community, which is not guaranteed.

BENQI is pioneering the integration of decentralized finance (DeFi) solutions on the Avalanche blockchain, aiming to address the inherent limitations of traditional finance and existing DeFi platforms. By offering a suite of protocols that includes BENQI Markets, BENQI Liquid Staking, and Ignite, BENQI facilitates seamless lending, borrowing, and earning interest on digital assets. This whitepaper outlines the mechanisms, tokenomics, and unique value propositions of BENQI, demonstrating its potential to significantly impact the DeFi landscape.

Introduction

Decentralized finance has emerged as a transformative force in the financial sector, offering unprecedented access to financial services without the need for traditional intermediaries. However, the growth of DeFi has been hampered by scalability issues, high transaction costs, and complex user experiences. BENQI addresses these challenges by leveraging the Avalanche blockchain’s scalability, low fees, and eco-friendly architecture, providing a robust platform for liquidity markets and liquid staking solutions.

BENQI Markets

BENQI Markets enable users to lend, borrow, and earn interest on their digital assets in a permissionless and transparent manner. By supplying liquidity to the protocol, depositors earn yield, while borrowers can obtain over-collateralized loans. The protocol dynamically adjusts interest rates based on market supply and demand, ensuring efficient capital allocation.

BENQI Liquid Staking

BENQI Liquid Staking offers a novel solution for tokenizing staked AVAX, allowing users to utilize their staked assets within DeFi applications. This approach not only enhances capital efficiency but also contributes to the security and decentralization of the Avalanche network by distributing delegations across validators.

Ignite

Ignite is designed to further incentivize participation in the BENQI ecosystem through targeted rewards and initiatives. It aims to foster a vibrant community of users, developers, and stakeholders committed to the protocol’s growth and success.

Tokenomics

BENQI’s native token, QI, plays a central role in the ecosystem, facilitating governance, incentivizing participation, and ensuring protocol security. The total supply of QI tokens is strategically allocated to support the protocol’s long-term viability and community engagement. Key aspects of the token distribution include:

• Community Incentives:

• 45% of QI tokens are allocated to liquidity mining and other community-driven initiatives.

• Team:

• 10% of the tokens are allocated to the founding team, subject to a four-year vesting schedule.

• Treasury:

• 15% is reserved for the Treasury to incentivize partnerships and protocol development.

• Exchange Liquidity:

• 5% is dedicated to providing liquidity on decentralized and centralized exchanges.

Governance

BENQI adopts a decentralized governance model, empowering QI token holders to propose and vote on protocol improvements and strategic decisions. This community-centric approach ensures that BENQI evolves in alignment with the interests and needs of its users.

Conclusion

BENQI represents a significant advancement in the DeFi space, offering scalable, efficient, and user-friendly protocols on the Avalanche blockchain. By addressing the limitations of existing DeFi platforms and traditional finance, BENQI is poised to drive the widespread adoption of decentralized financial services. As the ecosystem continues to grow and evolve, BENQI remains committed to innovation, security, and community governance, paving the way for a more inclusive and decentralized financial future.