BENQI is a permissionless DeFi protocol on Avalanche offering the BENQI Liquidity Market (BLM) and BENQI Liquid Staking (BLS) applications. BLM lets users lend, borrow, and earn interest on their digital assets by providing liquidity to the protocol. BLS lets users borrow crypto assets from these liquidity pools in an over-collateralized manner.

BLS is a liquidity staking solution on the Avalanche network where staked AVAX can be tokenised and used without locking liquidity for participating stakers. The liquid staking feature lets users swap, use, or collateralise AVAX without locking up the tokens while staking them using BENQI liquid staking.

Designed for capital efficiency, BENQIs DeFi solutions offer high liquidity, transparency, and yield-generating opportunities for users on the Avalanche blockchain. The project aims to maximise versatility of DeFi applications on the network and make staking even more lucrative and accessible for DeFi traders.

QI is the native token of the BENQI ecosystem. It can be staked for the veQI utility token that lets Avalanche validators enjoy additional delegations. It also serves as BENQIs governance tokens, empowering holders with voting rights on proposals submitted via BENQI Improvement Proposals (BIPs).

BENQIs non-custodial liquidity market protocol lets smart contracts manage users crypto assets instead of owning them directly. It leverages a hybrid liquidity model that ensures high liquidity and low slippage for trading assets.

BENQIs scalable liquidity market offers a seamless experience for DeFi users looking to lend, borrow, or earn yield on crypto assets. It also features a native DEX where users can swap or trade tokens conveniently and at competitive fees.

BENQI Liquid Staking (BLS) lets users stake AVAX tokens and receive a yield-bearing, tokenised version of their staked AVAX, sAVAX. sAVAX lets stakers earn yield from Avalanche validator rewards, and earn higher passive income from staking $AVAX. They can also unstake their tokens at any time, receiving their AVAX in exchange for sAVAX and accrued rewards.

The sAVAX token can also be used in other DeFi apps or to conduct transactions, ensuring that staking does not lock up liquidity within the Avalanche network. With BLS, users can stake $AVAX on the Avalanche C-Chain or Contract Chain, instead of on the P-Chain. This way, they can earn staking rewards without locking their tokens or running full validator nodes on the network.

The BENQI project was introduced in the market in March 2021 as an algorithmic liquidity market protocol on Avalanche. A month later, the team raised $6 million in funding in a strategic round. This was followed by a public token sale later in the same month.

In May 2021, the protocol partnered with Chainlink to integrate its price feeds natively on the Avalanche network to secure its operations. It also partnered with Holborn for extensive security testing of its platform before launch, which completed the smart contract audit in July.

The BENQI protocol launched in August 2021, after which the QI public sale participants received their tokens. In September, two key executives from Avalanche and Ava Labs - Wilson Wu and John Nahas, joined the project as strategic advisors.

BENQI announced its foray into the metaverse through its first GameFi Metaverse collaboration with Imperium Empires, a AAA GameFi project on Avalanche. BENQI released its liquid staking protocol BLS in February 2022.

In September 2022, BENQI announced the release of Phase 1 of veQI to boost staking activities on Avalanche. February 2023, the protocol announced the integration of Chainlinks Proof of Reserve and Automation to secure cross-chain asset lending operations.

The BENQI crypto may present a promising investment opportunity, particularly for those with faith in the potential of liquid staking and the overall DeFi market. As more users stake their tokens through the BLS protocol, the $QI value could rise.

The subsequent growth in on-chain activity may fuel the demand for QI cryptocurrency, driving an upward trend in the BENQI value. Heightened enthusiasm for DeFi endeavors might further enhance the QI price statistics.

An optimistic outlook in the crypto market may also play a role in elevating the $QI price, as a risk-tolerant mindset could stimulate increased purchasing activity within the market. Conversely, a pessimistic or risk-averse sentiment might lead to sell-offs, potentially putting downward pressure on the QI to USD price.

While it is difficult to predict whether BENQIs QI token will reach $1 in the future, some key fundamentals can offer insights into this. One of the biggest challenges standing in the way is the high total supply of QI tokens, fixed at 7.2 billion.

As of April 2023, the circulating supply of QI is just over 3.5 billion. If the QI price touches the critical level of $1, it will take the market cap of BENQI to $3.5 billion, an extraordinarily high and unrealistic valuation. If the developers implement token-burning mechanisms or significantly reduce the supply while other fundamentals support the price, we may see the BENQI token price touch the $1 mark.

It is important to note that the cryptocurrency market is highly volatile and subject to various factors, such as supply and demand, market sentiment, and technological developments. Therefore, any BENQI price prediction should be taken cautiously and not considered financial advice.

$QI is the native token of the BENQI ecosystem and has the following use cases:

Governance

$QI is the governance token of the BENQI protocol. It empowers token holders with voting rights to participate in decisions regarding the projects future evolution.

Collateral

BENQIs users can lock QI to borrow other cryptocurrencies or stablecoins in a process called QiFi. Users can borrow up to 80% of their QI collateral value, and the markets interest rate is determined by supply and demand.

Liquidity Provisioning

As a liquidity provision mechanism, users can stake $QI in liquidity pools to provide liquidity to the BENQI ecosystem and earn rewards in return. The amount of QI staked, and the duration of the stake determines the number of rewards earned.

Crypto Asset to Trade and HODL

Trade BENQI crypto against other digital assets on the BYDFi Spot Market to profit from changing market conditions and volatility. You can buy or sell QI against other crypto assets or hold it long-term if you believe in the future potential of the BENQI protocol.

Remember, however, that digital assets experience high market risks and volatility. Its best to DYOR before entering new trades in the crypto market to limit your risk exposure.

BENQI Liquid Staking (BLS) supports staked AVAX, which is tokenized and can be freely used within Decentralized Finance (DeFi) applications such as Automated Market Makers (AMMs), Lending & Borrowing Protocols, and Yield Aggregators.

BLS lets users stake AVAX on the Avalanche C-Chain and tokenize the stake to receive sAVAX. The sAVAX tokens can be freely used, swapped, or collateralized as a yield-bearing asset within supported DeFi applications.

Meanwhile, BENQIs liquidity market BLM supports several other digital assets, including BUSD, BTC, WETH, LINK, USDT, USDC, DAI, QI, and WBTC.

BENQI Finance is funded by several renowned investors from the crypto industry, including Dragonfly Capital, Ava Labs, Morningstar Ventures, Genblock Capital, Ascensive Assets, GBV Capital, and Mechanism Capital.