{"id":"benqi","title":"BENQI","content":"**BENQI** is a [decentralized finance](https://iq.wiki/wiki/defi) (DeFi) protocol built on the [Avalanche](https://iq.wiki/wiki/avalanche) [blockchain](https://iq.wiki/wiki/blockchain), offering a suite of services including [liquid staking](https://iq.wiki/wiki/liquid-staking), lending, borrowing, and validator bootstrapping. It aims to provide accessible and efficient DeFi solutions within the Avalanche ecosystem, becoming a prominent application by [Total Value Locked](https://iq.wiki/wiki/tvl) (TVL) on the network. [\\[1\\]](#cite-id-ZkdH2fJHJh)\n\n## Overview\n\nBENQI operates as a comprehensive [DeFi](https://iq.wiki/wiki/defi) hub on [Avalanche](https://iq.wiki/wiki/avalanche), designed to facilitate various financial activities for users. The protocol's core offerings include a lending and borrowing platform, a [liquid staking](https://iq.wiki/wiki/liquid-staking) solution for AVAX, and tools for bootstrapping Avalanche [validators](https://iq.wiki/wiki/validator). BENQI's objective is to simplify participation in decentralized finance by addressing common barriers such as high capital requirements and technical complexities associated with running blockchain infrastructure.\n\n$$widget0 [YOUTUBE@VID](https://youtube.com/watch?v=qjuY8tklDD4)$$\n\nThe protocol has established itself as a leading application on [Avalanche](https://iq.wiki/wiki/avalanche), distinguished by its deep liquidity and extensive integrations across the broader [DeFi](https://iq.wiki/wiki/defi) landscape. Its primary products are designed to provide utility and yield opportunities for digital assets, particularly AVAX, the native token of the [Avalanche](https://iq.wiki/wiki/avalanche) network. [\\[1\\]](#cite-id-ZkdH2fJHJh) [\\[6\\]](#cite-id-CaI4mPicJw) [\\[2\\]](#cite-id-6SGzSFHH9O) [\\[7\\]](#cite-id-uwr8hvGpQI)\n\n## Technology\n\nBENQI's architecture is built on the [Avalanche](https://iq.wiki/wiki/avalanche) C-Chain, leveraging its high throughput and low transaction fees. The protocol comprises four main products, each serving a distinct function within the [DeFi](https://iq.wiki/wiki/defi) ecosystem: BENQI [Liquid Staking](https://iq.wiki/wiki/liquid-staking), BENQI Markets, Ignite, and [Node](https://iq.wiki/wiki/node) Voting [\\[1\\]](#cite-id-ZkdH2fJHJh).\n\n### BENQI Liquid Staking (BLS)\n\nBENQI Liquid Staking allows users to stake their [AVAX](https://iq.wiki/wiki/avalanche-avax) tokens and receive sAVAX, a [liquid staking](https://iq.wiki/wiki/liquid-staking) token. This sAVAX continually accrues value in AVAX and can be utilized across various DeFi protocols, including BENQI's own lending and borrowing platform, to earn additional yield while maintaining liquidity. A key feature of BLS is the ability for users to stake directly from the Avalanche C-Chain, eliminating the need to bridge assets to the P-Chain [\\[2\\]](#cite-id-6SGzSFHH9O). The sAVAX token is designed to be widely integrated throughout the Avalanche [DeFi](https://iq.wiki/wiki/defi) ecosystem, providing flexibility for users to engage in other [decentralized applications](https://iq.wiki/wiki/decentralized-application) [\\[1\\]](#cite-id-ZkdH2fJHJh).\n\n### BENQI Markets (BLM)\n\nBENQI Markets is a decentralized lending and borrowing protocol where users can supply their [crypto](https://iq.wiki/wiki/cryptocurrency) assets to earn interest or borrow funds through over-collateralized loans. The platform provides a user interface for monitoring all positions. It features two primary market types:\n\n* **Core Markets:** These are designed for highly liquid assets such as AVAX and [USDC](https://iq.wiki/wiki/usdc), serving as the main lending and borrowing pools.\n* **Avalanche Ecosystem Markets:** These markets support a broader range of assets, including long-tail [cryptocurrencies](https://iq.wiki/wiki/cryptocurrency) and tokenized [real-world assets](https://iq.wiki/wiki/real-world-assets-rwas) (RWAs). They incorporate specialized risk management frameworks to prevent volatility or liquidity issues in one market from affecting others, offering greater flexibility for [DeFi](https://iq.wiki/wiki/defi) participants [\\[2\\]](#cite-id-6SGzSFHH9O) [\\[1\\]](#cite-id-ZkdH2fJHJh).\n\n### Ignite\n\nIgnite is a solution developed by BENQI to simplify the process of launching and operating [Avalanche](https://iq.wiki/wiki/avalanche) validators and Subnets. It addresses the technical complexities and significant upfront capital typically required for [validator](https://iq.wiki/wiki/validator) deployment. Ignite offers two main options:\n\n* **Pay-As-You-Go (PAYG):** This option allows users to run a validator by paying a weekly fee, without requiring a large upfront [AVAX](https://iq.wiki/wiki/avalanche-avax) stake. It is suitable for short-term use cases, such as MEV (Maximal Extractable Value) solvers.\n* **Stake:** Users can stake QI tokens and cover hosting fees to run automated [validators](https://iq.wiki/wiki/validator), earning QI rewards without needing to manage technical details [\\[2\\]](#cite-id-6SGzSFHH9O) [\\[1\\]](#cite-id-ZkdH2fJHJh).\n\n### Node Voting\n\n[Node](https://iq.wiki/wiki/node) Voting is a governance feature that enables holders of BENQI Miles tokens to support specific validators on the [Avalanche](https://iq.wiki/wiki/avalanche) network. This mechanism influences how AVAX from BENQI’s Liquid Staking Pool is delegated to [validators](https://iq.wiki/wiki/validator). The [liquid staking](https://iq.wiki/wiki/liquid-staking) pool allocates AVAX with a 35/65 delegation split: 35% is delegated based on community votes via BENQI Miles, while the remaining 65% is randomly allocated to all validators meeting minimum criteria. BENQI Miles can be accrued through a \"Flex Option,\" where miles accumulate gradually as users stake their QI, with full benefits after a specified period. A \"Lock Option\" is a planned feature that would allow instant mile accrual upon [staking](https://iq.wiki/wiki/staking), but with a delayed exit period for unstaking [\\[2\\]](#cite-id-6SGzSFHH9O) [\\[1\\]](#cite-id-ZkdH2fJHJh).\n\n## Tokenomics\n\nThe native [governance](https://iq.wiki/wiki/governance-tokens) and [utility token](https://iq.wiki/wiki/utility-token) of the BENQI ecosystem is QI. It plays a crucial role in the protocol's decentralized governance and various utility functions.\n\n* **Governance:** QI token holders can vote on BENQI Improvement Proposals (BIPs), which dictate the future direction and changes to the protocol. Holding QI tokens is also a prerequisite for initiating new proposals [\\[3\\]](#cite-id-sVJWW9ecuY).\n* **Utility:** QI tokens are distributed through a liquidity mining program to incentivize users to provide liquidity. Additionally, QI can be staked on BENQI [Liquid](https://iq.wiki/wiki/liquid) [Staking](https://iq.wiki/wiki/staking) to receive veQI, a utility token that enables additional AVAX [staking](https://iq.wiki/wiki/staking) delegations to high-performing [Avalanche](https://iq.wiki/wiki/avalanche) [validators](https://iq.wiki/wiki/validator) [\\[3\\]](#cite-id-sVJWW9ecuY).\n\n## Security\n\nBENQI prioritizes security through rigorous audits and maintaining a public, open-source codebase to ensure transparency and mitigate risks. While no blockchain protocol is entirely risk-free, BENQI acknowledges potential [smart contract](https://iq.wiki/wiki/smart-contract) and liquidation risks. To address these, the protocol partners with leading security firms for continuous monitoring and protection [\\[1\\]](#cite-id-ZkdH2fJHJh).\n\nBENQI's security partners include:\n\n* **Chaos Labs:** Provides risk management and analytics [\\[2\\]](#cite-id-6SGzSFHH9O).\n* **Hexagate:** Offers real-time prevention solutions [\\[2\\]](#cite-id-6SGzSFHH9O).\n* **Immunefi:** Operates a bug bounty program for the protocol [\\[2\\]](#cite-id-6SGzSFHH9O).\n* **zeroShadow:** Contributes to security measures [\\[2\\]](#cite-id-6SGzSFHH9O).\n\n## Partnerships\n\nBENQI has formed strategic partnerships to enhance its ecosystem and expand its offerings. Its foundational partnership is with [Avalanche](https://iq.wiki/wiki/avalanche), the blockchain on which the protocol is built, including a joint $3 million liquidity mining initiative launched in August 2021 to accelerate [DeFi](https://iq.wiki/wiki/defi) growth on the network.\n\nIn addition to its core platform, BENQI has collaborated with other projects within the [Avalanche](https://iq.wiki/wiki/avalanche) ecosystem. For instance, it launched initial Isolated Markets with [Trader Joe](https://iq.wiki/wiki/trader-joe) and Coq Inu Avax in July 2024, expanding its lending and borrowing capabilities to a wider range of assets. The protocol also integrated its sAVAX [liquid staking](https://iq.wiki/wiki/liquid-staking) token with Anchor Protocol and Terra Money in February 2022, further increasing the utility and interoperability of sAVAX across different [DeFi](https://iq.wiki/wiki/defi) platforms. [\\[5\\]](#cite-id-Vk9MofacbB)","summary":"BENQI is a decentralized finance (DeFi) protocol on Avalanche, offering liquid staking for AVAX (sAVAX), lending and borrowing markets, and tools for bootstrapping Avalanche validators. 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The 2024 Guide\\n\",\"timestamp\":1752712570331,\"url\":\"https://www.youtube.com/watch?v=qjuY8tklDD4\"},{\"id\":\"uwr8hvGpQI\",\"description\":\"What is BENQI?\\n\",\"timestamp\":1752712916478,\"url\":\"https://www.thebigwhale.io/tokens/benqi\"}]"},{"id":"website","value":"https://benqi.fi/"},{"id":"twitter_profile","value":"https://x.com/BenqiFinance"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/benqi"},{"id":"github_profile","value":"https://github.com/Benqi-fi/BENQI-Smart-Contracts"},{"id":"medium_profile","value":"https://benqifinance.medium.com/"},{"id":"youtube_profile","value":"https://www.youtube.com/c/benqifinance"},{"id":"telegram_profile","value":"https://t.me/BENQIFinance"},{"id":"discord_profile","value":"https://discord.com/invite/jyPAjZjwk6"},{"id":"contract_url","value":"https://avascan.info/blockchain/c/address/0x8729438eb15e2c8b576fcc6aecda6a148776c0f5/token"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmW62wsoMT3YYxzTT25yAahKAP3HoJNhBK6bcjP2Fbiuxv\""},{"id":"commit-message","value":"\"Added new wiki entry for Hannu Kuusi, using 'hannu-kuusi' as the unique identifier.\""},{"id":"previous_cid","value":"QmW62wsoMT3YYxzTT25yAahKAP3HoJNhBK6bcjP2Fbiuxv"}],"events":[],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"language":"en","version":1,"linkedWikis":{"blockchains":["avalanche"],"founders":["jd-gagnon","dan-mgbor","hannu-kuusi"],"speakers":[]}}