Benqi aims to solve problems by providing a set of DeFi products on a scalable and decentralized platform. With a focus on accessibility, ease of use and low fees, BENQI aims to democratize access to decentralized finance products.
Description of the Benqi site
BENQI — a decentralized finance (DeFi) liquidity marketplace protocol, based on Avalanche.
The BENQI protocol consists of:
| 1. | BENQI liquidity market (BLM). |
| 2. | BENQI liquid staking (BLS). |
The BENQI Liquidity Market (BLM) protocol allows users to lend, borrow and earn interest effortlessly with their digital assets. Savers who provide liquidity to the protocol can earn passive income, while borrowers can borrow over-collateralized.
To use the protocol, the user contributes their preferred asset, which is accepted by the protocol. Users will be able to earn interest, based on market demand for assets to borrow. In addition, the deposited assets can be used as collateral so that the user can borrow other assets. The interest, received from the placement of funds, offsets the accrued interest rates on loans.
QiToken — a representation of a user's asset balance, provided to the BENQI protocol. It enters the wallet to provide assets to the protocol and functions to accrue value against the original asset through the interest rate of the token. The generated QiTokens will be based on the underlying asset, provided to the protocol (eg QiAVAX, QiLINK, QiWBTC, QiUSDT, etc.).
Liquid Staking (BLS)
BENQI Liquid Staking (BLS) — a liquid staking protocol, based on Avalanche. It tokenizes AVAX staking and allows users to freely use it in decentralized finance applications such as automated market makers (AMMs), lending and borrowing protocols, yield aggregators, etc. BLS allows users to stake AVAX on C-Chain.
This allows users to receive validation rewards from P-Chain without running a full node or blocking AVAX on the validating node. sAVAX - the token that users receive by listing their AVAX on the BLS. This is a staking, tokenized version of AVAX that earns interest from Avalanche staking rewards. Users can exchange sAVAX for AVAX+ Staking Rewards through the Unstake tab on the BLS app.