What Is Benqi?
Benqi is a DeFi liquid market protocol built on the Avalanche network. It aims to ease access to financial products through permissionless lending/borrowing and a capital-efficient staking product.
Background
JD Gagnon, Hannu Kuusi, and Alexander Shul founded Benqi through their firm, Rome Blockchain Labs Inc—the protocol launched in April 2021.
How It Works
The platform mainly consists of two services: Benqi Liquidity Market (BLM) and Benqi Liquid Staking (BLS). BLM allows lenders to earn interest on their digital assets when they supply liquidity to a shared liquidity market, which borrowers will borrow from using their collateral. BLS unlocks capital efficiency for staked AVAX by tokenizing it and allowing it to be utilized within other DeFi platforms.
Benqi token holders will eventually be able to initiate and vote on Benqi Improvement Proposals (BIPs) when the protocol transitions to a DAO. After the transition, Benqi token holders will oversee the ecosystem and steer the direction of the protocol.
Key Takeaways
- Benqi is a DeFi protocol on the Avalanche network.
- It offers permissionless lending/borrowing and a capital-efficient staking product.
- Benqi Liquidity Market (BLM) allows lenders to earn interest on their assets.
- Benqi Liquid Staking (BLS) unlocks capital efficiency for staked AVAX.
- Benqi token holders will have governance power through Benqi Improvement Proposals (BIPs).
