BENQI

What is BENQI?

BENQI is a suite of decentralized finance protocols operating on the Avalanche blockchain, comprising BENQI Markets, BENQI Liquid Staking, and Ignite.

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Recent Video Interview

Main points of the interview:

• BENQI's liquid staking protocol tokenizes staked AVAX, enabling use in DeFi.
• Staking involves locking up AVAX tokens to support the network and earn rewards.
• BENQI's focus is on security, economic stability, and reducing risk in lending.
• Current growth is driven by support for subnets and institutional liquid staking initiatives.

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BENQI Markets

BENQI Markets facilitates seamless lending, borrowing, and interest earning with digital assets. Users can instantly supply or withdraw liquidity from a shared market, borrow in an over-collateralized manner, and monitor interest rates transparently based on market supply and demand.

BENQI Liquid Staking

This protocol tokenizes staked AVAX, allowing users to use, swap, or collateralize yield-bearing assets within decentralized finance applications. It offers a capital-efficient staking solution, enabling the transfer of staked AVAX, additional utility through DeFi, and easy staking on the Avalanche Contract Chain (C-Chain) without cross-chain transfers.

Ignite

Ignite focuses on bootstrapping Avalanche validators and Subnets, catering to a diverse user base, including institutions, developers, and Web3 enthusiasts. It streamlines the launch of validators and blockchains through Subnets, promoting innovation in the Web3 space.

Using the Protocol

To engage with BENQI, users deposit preferred assets, earning interest based on market demand. These assets can serve as collateral for borrowing, with interest earned offsetting borrowing costs. qiTokens represent deposited assets and can be traded on Avalanche.

BENQI (QI) Token

The native QI token governs the BENQI ecosystem. It oversees BENQI Liquidity Market and BENQI Liquid Staking, with additional utility provided through veQI, granting extra AVAX delegations from BENQI Liquid Staking. QI holders participate in governance through BENQI Improvement Proposals (BIPs), influencing key parameters such as interest rates, risk parameters, and liquidity mining programs.

As BENQI evolves, the protocol aims for progressive decentralization. The total supply of QI is 7,200,000,000 tokens, distributed to active platform participants. The transition to a Decentralized Autonomous Organization (DAO) is envisioned, where QI holders will initiate and vote on proposals shaping the protocol's future.

Governance

As BENQI evolves, it aims to progressively decentralize its governance, transitioning towards a Decentralized Autonomous Organization (DAO) governed by QI token holders. Initially, the founding team will kickstart BENQI's release. The QI token plays a pivotal role, being essential for proposing and voting on BENQI Improvement Proposals. These proposals cover critical aspects like the economic model, security measures, and protocol development. Token holders can influence key parameters, including the interest rate model, addition of assets meeting risk requirements, risk parameters for overcollateralization and liquidation, adjustments to the Liquidity Mining Program based on market conditions, and enhancements to the protocol's smart contracts and governance processes. This democratic process empowers the community to shape the future direction of BENQI.

BENQI Team Background

Rome Blockchain Labs Inc., the development force behind BENQI, serves as an incubator and specialized software firm for decentralized finance (DeFi). JD Gagnon, CEO and co-founder, holds a commerce degree in finance and accounting. Before Rome Blockchain Labs, he created the Velox algorithmic trading platform and heads Scotch & Ramen Media, Inc., and serves as CSO of Etheralabs, Inc.

Co-founders include Hannu Kuusi, with expertise in institutional-grade fintech and military infrastructure, and Alexander Szul, overseeing BENQI liquidity market platform development. Gagnon's leadership and the team's diverse skills contribute to BENQI's growth in the DeFi landscape.

Project Development

In 2023, BENQI accounced and launched Ignite, an inclusive and revolutionary approach to launching validators and Avalanche Subnets, catering to a diverse audience, from institutions to individual developers and Web3 enthusiasts. Designed to be permissionless, flexible, and cost-effective, Ignite facilitates affordable blockchain development on Avalanche's advanced Web3 technology, fostering innovation. The motivation behind Ignite stems from the Capital Expenditure (CAPEX) problem, particularly daunting for developers.

Ignite offers two validation service models: Pay As You Go (PAYG) and Stake. The PAYG model transforms launching an Avalanche validator from a Capital Expenditure (CAPEX) to an Operating Expense (OPEX) consideration. Users pay once in USDC, AVAX, or QI, and Ignite provides all the AVAX needed. Paying in QI grants a 5% discount. On the other hand, the Stake model requires a mix of AVAX and QI collateral but eliminates fees. With a minimum of 500 AVAX + 150 AVAX worth of QI, users can launch a validator, earning proportional network rewards based on their stake.