BENQI

price
change

Discover BENQI's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is BENQI?

BENQI (QI) is a decentralized finance (DeFi) protocol built on the Avalanche blockchain. It offers two main protocols: BENQI Liquid Staking (BLS) and BENQI Liquidity Market (BLM). BLS tokenizes staked AVAX, allowing users to utilize the yield-bearing asset within DeFi applications. BLM enables users to lend, borrow, and earn interest on their crypto assets. The QI token serves as the native governance and utility token, overseeing protocol improvements and changes through the BENQI DAO.

How is BENQI used?

BENQI (QI) is a cryptocurrency token used primarily for governance and utility within the BENQI ecosystem. Here are the key ways it is utilized:

Governance
  • Voting: QI token holders can vote on proposals for the BENQI protocol, known as BENQI Improvement Proposals (BIPs), which shape the direction of the project.
  • Initiating Proposals: Users must hold QI tokens to initiate new proposals for the protocol.
Utility
  • Liquidity Mining: QI tokens are distributed through a liquidity mining program, incentivizing users to provide liquidity to the protocol.
  • Staking: QI tokens can be staked on BENQI Liquid Staking (BLS) to receive veQI, a utility token that enables additional AVAX staking delegations to high-performing Avalanche validators.

Overall, the QI token plays a crucial role in both governing the BENQI protocol and facilitating various utility functions within the ecosystem.

How do I store BENQI?

To store BENQI (QI) tokens, you can use several wallet options. Here are a few:

  1. Trezor One: You can store QI tokens on the Trezor One wallet, which supports the Avax-C chain.
  2. Coin98 Wallet: Coin98 Wallet allows you to store QI tokens by following these steps: open the wallet, click "Receive" on the home screen, and search for the QI token.
  3. Benqi Wallet: You can also choose a Benqi wallet specifically designed for storing and managing QI tokens.

These wallets provide a secure and convenient way to manage your BENQI tokens.

How to buy BENQI?

To buy BENQI (QI) tokens, follow these steps:

  1. Choose an Exchange:

    • Coinbase: Create an account, add a payment method, and search for BENQI to purchase.
    • Kriptomat: Sign up, verify your account, add funds, and select BENQI to buy.
    • Binance: Register, verify your identification, and choose a payment method to buy BENQI.
    • KuCoin: Create an account, deposit funds, and purchase BENQI (available for non-USA residents).
    • WazirX: Sign up, deposit funds, and buy BENQI (available for non-USA residents).
  2. Verify Your Account:

    • Coinbase: Verify your ID and proof of address if required.
    • Kriptomat: Verify your email, phone number, and identity.
    • Binance: Verify your identification before using the platform.
  3. Add Funds:

  • Coinbase: Use a bank account, debit card, or wire transfer.
  • Kriptomat: Use a bank deposit or credit card.
  • Binance: Use a credit card, debit card, bank deposit, or third-party payment channels.
  1. Purchase BENQI:

    • Coinbase: Enter the amount you want to spend, preview the transaction, and confirm your purchase.
    • Kriptomat: Enter the amount, preview the transaction, and confirm your purchase.
    • Binance: Select BENQI, enter the amount, and confirm your purchase.
  2. Store or Use Your BENQI:

    • Coinbase: Store your BENQI in your Coinbase account or transfer it to a personal wallet.
    • Kriptomat: Store your BENQI in your Kriptomat account or transfer it to a personal wallet.
    • Binance: Store your BENQI in your Binance account, trade it for other cryptocurrencies, or stake it for passive income.

Remember to always follow the specific instructions for the exchange you choose and be aware of any fees and market risks associated with purchasing and holding cryptocurrencies.

Discover
BENQI
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

History of BENQI

BENQI (QI) is a decentralized finance (DeFi) protocol built on the Avalanche blockchain. The protocol was founded in 2021 with $6 million in backing from various strategic investors, including Ascensive Assets, Dragonfly Capital, Mechanism Capital, and others. The founding team, Rome Blockchain Labs Inc., is responsible for the development of BENQI. The co-founders are JD Gagnon, Hannu Kuusi, and Alexander Szul.

BENQI is designed to provide a suite of DeFi protocols, including BENQI Markets, BENQI Liquid Staking, and Ignite. BENQI Markets enables users to lend, borrow, and earn interest with their digital assets in a permissionless and non-custodial manner. BENQI Liquid Staking tokenizes staked AVAX, allowing users to utilize their yield-bearing assets within DeFi applications. Ignite is a protocol designed to bootstrap Avalanche validators and Subnets, making it accessible to a wide range of users.

The protocol aims to offer a more efficient and cost-effective alternative to traditional DeFi platforms, leveraging Avalanche's high scalability and low fees. BENQI has gained popularity among DeFi users, with a significant following on social media platforms like Twitter. The QI token is the native token of the BENQI protocol and is supported on the Avalanche Mainnet.

Since its inception, BENQI has continued to evolve and expand its offerings, with ongoing updates and improvements to its protocols. The project's focus on decentralized finance and liquidity markets has positioned it as a notable player in the Avalanche ecosystem.

Discover
BENQI
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

How BENQI works

BENQI (QI) is a decentralized finance (DeFi) protocol built on the Avalanche blockchain. It consists of three main components: BENQI Markets, BENQI Liquid Staking, and Ignite.

BENQI Markets

BENQI Markets is a liquidity market protocol that allows users to lend, borrow, and earn interest on their digital assets. Depositors providing liquidity to the protocol earn yield, while borrowers can borrow in an over-collateralized manner. This means that borrowers must provide more collateral than the value of the loan they are taking out. The protocol is permissionless, meaning anyone can use it without needing approval from a central authority.

BENQI Liquid Staking

BENQI Liquid Staking is a liquid staking solution that tokenizes staked AVAX. This allows users to utilize their staked AVAX without lock-up periods or tedious cross-chain transfers. Users can freely transfer, trade, or use their yield-bearing asset within DeFi applications such as automated market makers (AMMs), lending and borrowing protocols, and yield aggregators.

Ignite

Ignite is a protocol designed to bootstrap Avalanche validators and Subnets. It is permissionless and allows builders and users to launch Avalanche validators with minimal capital required and affordably launch blockchains through Subnets to bootstrap the next big Web3 idea.

Governance and Token

The QI token is the native token of the BENQI ecosystem. It is used primarily for governance and utility purposes. QI token holders can vote on proposals for the protocol, known as BENQI Improvement Proposals (BIPs), which determine the direction of the protocol. Additionally, QI tokens can be staked to earn a passive income and participate in the Safety Module, which helps offset any lending shortfalls.

Risks and Security

While BENQI has taken steps to minimize risks, such as undergoing audits and keeping the protocol public and open-sourced, there are still risks associated with the protocol. These risks include Smart Contract risks and Liquidation risks. Users should be aware of these risks before investing in or using the protocol.

Benefits

BENQI offers several benefits to users, including faster lending services, transparency, and lower fees compared to traditional lending systems. It also provides a more accessible and decentralized platform for users to participate in DeFi activities.

Discover
BENQI
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

BENQI's strengths

The token BENQI (QI) has several strengths that make it a valuable asset in the decentralized finance (DeFi) ecosystem:

  1. Governance and Utility: QI serves as both a governance token and a utility token, allowing holders to participate in decision-making processes and access various features within the BENQI protocol.

  2. Liquidity and Staking: BENQI's liquid staking feature allows users to stake AVAX tokens and receive a yield-bearing asset, sAVAX, which can be freely transferred and used within DeFi applications. This feature enhances the utility of staked assets without lock-up periods.

  3. Decentralized and Permissionless: BENQI operates as a fully decentralized network, ensuring security and transparency. Users can lend, borrow, and earn interest on their crypto assets without intermediaries, making it a secure and accessible platform.

  1. Passive Income Streams: BENQI offers users multiple ways to earn interest without risking the loss of their original assets. Rewards are paid out in QI, which can be staked or lent to secure more profits.

  2. Expandability and Open-Source Code: The protocol's open-source code encourages community development, making it easier for new strategies to be built on top of its lending functions. This expandability enhances the usability and liquidity of the protocol.

  3. Non-Custodial Nature: BENQI's non-custodial design ensures that users' funds remain safe in their wallets until transactions are executed, reducing the risk of hacking and centralization.

  1. Highly Scalable: BENQI leverages the Avalanche blockchain, which provides high transactions throughput and low fees, making it an ideal platform for fast and cost-effective transactions.

These strengths position BENQI (QI) as a versatile and valuable token in the DeFi space.

BENQI's risks

BENQI (QI) is a decentralized finance (DeFi) platform built on the Avalanche blockchain. It offers a suite of protocols that enable users to lend, borrow, and earn interest on their digital assets without intermediaries. Despite its benefits, BENQI carries several financial risks that investors should be aware of:

  1. Smart Contract Risks: BENQI relies on smart contracts to manage user funds and execute transactions. While these contracts are designed to be secure, they can still contain vulnerabilities or bugs that could lead to losses.

  2. Liquidation Risks: The platform's lending and borrowing mechanisms are based on over-collateralization. If market conditions suddenly shift, borrowers may struggle to meet their collateral requirements, leading to potential liquidation risks.

  3. Market Volatility: The cryptocurrency market is highly volatile, and the value of BENQI's native token, QI, can fluctuate significantly. Users should be prepared for price volatility and potential losses.

  1. Liquidity Risks: Users providing liquidity to BENQI's pools may encounter difficulties when withdrawing funds, especially during periods of high demand. This could lead to liquidity shortages and losses.

  2. Regulatory Risks: DeFi platforms like BENQI operate in a regulatory gray area. Changes in regulations regarding cryptocurrency and DeFi can impact the platform's operations and user assets.

  3. Security Risks: BENQI should have security measures in place to protect user funds and data. Users should research and verify the security practices of the platform to minimize risks.

  1. User Responsibility: Users play a significant role in their own security. They should use strong and unique passwords, enable two-factor authentication, and exercise caution when interacting with DeFi platforms and external links.

  2. Scams and Phishing: Users should be cautious of phishing attempts and scams. Always ensure you are using the official website or app of BENQI and avoid clicking on suspicious links or sharing private keys.

  3. Community and Reputation: Users should check the community and reputation of BENQI within the crypto space. User reviews, community discussions, and feedback from trusted sources can provide insights into the platform's credibility and safety.

  1. Diversification: To minimize risk, users should avoid putting all their crypto assets into a single DeFi platform. Diversifying across different projects can help spread risk.

By understanding these financial risks, investors can make more informed decisions when considering BENQI (QI) as an investment opportunity.

Discover
BENQI
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Did BENQI raise funds?

Discover
BENQI
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

BENQI’s team

  • Founding Team: The founding team of BENQI includes JD Gagnon, Hannu Kuusi, and Alexander Shul, who bring a mix of finance, fintech, and software development expertise to the project.

Whalee AI

The fundamental analysis assistant for crypto value investors.

BENQI NEWS REPORT

Latest news

Want an analysis of BENQI? Tell us on discord.

Similar tokens

Help us improve!
Tell us what you think of this page and which features you would like to see next.
OPEN FORM