BENQI (QI)
BENQI is a decentralized non-custodial liquidity market protocol that operates on the Avalanche blockchain. It is designed to facilitate seamless lending, borrowing, and interest-earning opportunities for users with digital assets. The protocol allows depositors to provide liquidity and earn passive income, while borrowers can access loans in an over-collateralized manner.
The Avalanche blockchain
Avalanche is a highly scalable, open-source platform for launching decentralized applications and enterprise blockchain deployments. It is known for its high throughput and low latency, making it an ideal foundation for a decentralized finance (DeFi) protocol like BENQI. Avalanche's consensus protocol allows for the confirmation of transactions in seconds, which enhances the user experience by providing swift and efficient financial operations.
| Ticker | QI |
| Category | Decentralized Finance (DeFi) |
| Website | https://app.benqi.fi/ |
| @BenqiFinance | |
| Telegram | BenqiFinance |
| Contract Addresses | |
|---|---|
| avalanche | 0x87...f5 Copied! |
How BENQI works
BENQI operates as a decentralized finance platform that connects lenders and borrowers in a non-custodial manner. This means that users maintain control over their digital assets throughout the lending and borrowing processes.
Lending on BENQI
Users who wish to lend their digital assets can deposit them into the BENQI protocol, providing liquidity to the market. In return, they earn passive income in the form of interest. The interest rates are determined algorithmically based on supply and demand dynamics within the protocol, ensuring competitive returns for depositors.
Borrowing on BENQI
Borrowers can access liquidity by providing collateral in excess of the amount they wish to borrow, known as over-collateralization. This mechanism ensures the security of the protocol by minimizing the risk of default. Borrowers can use the borrowed funds for various purposes while managing their collateral efficiently.
Key features of BENQI
BENQI offers several key features that make it a compelling choice for users interested in decentralized finance:
- Non-custodial protocol: Users retain control over their assets, enhancing security and reducing reliance on centralized entities.
- Over-collateralized borrowing: This ensures the safety and stability of the protocol by requiring borrowers to provide collateral that exceeds the loan amount.
- Automated interest rates: Interest rates are dynamically adjusted based on market conditions, offering attractive returns for lenders and competitive borrowing costs.
- Built on Avalanche: Leveraging the speed and scalability of the Avalanche blockchain, BENQI provides a high-performance user experience.