BENQI Liquid Staked AVAX

What is BENQI?

BENQI comprises a suite of decentralized finance protocols integrated with Avalanche. The suite includes BENQI Markets, BENQI Liquid Staking, and Ignite.

BENQI Markets facilitates seamless lending, borrowing, and interest earning activities with digital assets. Depositors contributing liquidity to the protocol receive yield, and borrowers can access loans in an over-collateralized manner. The platform operates on a permissionless basis, enabling DeFi users to:

• Instantly supply and withdraw liquidity from a shared market.
• Instantly borrow from a liquidity market using supplied assets as collateral.
• Access a real-time and transparent overview of interest rates based on market supply and demand.

---

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.

---

What is BENQI Liquid Staked AVAX (SAVAX)?

BENQI Liquid Staking introduces an Avalanche liquid staking solution that tokenizes staked AVAX (SAVAX) . This tokenization empowers users to utilize, swap, or collateralize the yield-bearing asset within Decentralized Finance applications. The product is a capital-efficient staking solution offering Avalanche users the ability to:

• Freely transfer staked AVAX locked in validators securing the Avalanche network.
• Enhance utility on their yield-generating asset by trading or using it as collateral within Decentralized Finance.
• Seamlessly stake AVAX on the Avalanche Contract Chain (C-Chain) without the need for tedious cross-chain transfers or server hosting.

Why Liquid Staking?

Liquid Staking serves as a remedy to liberate the locked-up capital, enhancing capital efficiency within the Avalanche network. Through the tokenization of staked AVAX into sAVAX (BENQI Staked AVAX), users gain the ability to employ the asset within Decentralized Finance protocols while earning passive returns for contributing to the security of the Avalanche network.

The sAVAX asset presents developers and users with a myriad of strategies and options to explore and build upon.

Advantages of Staking AVAX on BLS (Benqi Liquid Staking):

• No lock-up periods.
• No fees for depositing or withdrawing from BLS.
• Complete control over your asset and associated accounts.
• Easily stake AVAX and commence earning without the necessity for cross-chain transfers to the Avalanche P-Chain.
• Obtain extra utility from your interest-bearing asset, which can be freely utilized within Decentralized Finance (DeFi).

BENQI Team Baackground

Rome Blockchain Labs Inc. oversees the development of BENQI, serving as both an incubator and a specialized software development firm in the field of decentralized finance (DeFi). JD Gagnon, the co-founder and CEO of Rome Blockchain Labs, leads the team alongside co-founders Hannu Kuusi and Alexander Shul.

JD Gagnon holds a bachelor's degree in commerce with a focus on finance and accounting from the University of Alberta in Edmonton, Canada. Prior to his involvement with Rome Blockchain Labs, Gagnon established the Velox algorithmic trading platform. Additionally, he is the founder and CEO of Scotch & Ramen Media, Inc., and holds the position of Chief Strategy Officer (CSO) at Etheralabs, Inc.

BENQI Project Development

Ignite presents 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 validation on Avalanche's cutting-edge Web3 technology, encouraging a surge in Web3 innovation.

The motivation behind Ignite stems from addressing the Capital Expenditure (CAPEX) problem. For instance, a prospective developer seeking to build a high-performance DeFi protocol on Avalanche realizes the cost challenges associated with running a subnet:

• Minimum stake for Avalanche validator: 2,000 AVAX
• Minimum validators for a recommended Subnet: Six validators = 6 * 2,000 AVAX = 12,000 AVAX (equivalent to $320,000 as of December 8, 2023)

This high cost impedes progress, forcing the developer to divert time and resources towards fundraising activities instead of focusing on protocol development. Ignite offers a solution by significantly reducing the cost to run a subnet to as low as approximately 24 AVAX per week, allowing developers to allocate resources more efficiently and accelerate their project timelines.

BENQI Liquid Staked AVAX Price Analysis

As of December 21 2024 BENQI Liquid Staked AVAX has a marketcap of $368M. This is {{percentagefromath}} from its all time high of $103.55. In terms of its tokenomics, there's a total supply of 7.9M with 100% currently outstanding. Keep in mind BENQI Liquid Staked AVAX has a fully diluted value of $368M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.