MEXC Research: BENQI, Avalanche’s Collateralized Loan Protocol
BENQI
BENQI is built on Avalanche’s highly scalable network. BENQI’s vision is to launch BENQI on the Avalanche C-Chain at BENQI to build a bridge between DeFi and institutional networks. Through BENQI, Avalanche users can obtain interest from their assets. Through over-collateralized loans, they can receive credit and also receive QI governance tokens as rewards for providing liquidity to the protocol and Pangolin.
Participate in liquidity at anytime: Provide or withdraw liquidity from the liquidity market at any time.
Collateralized loans：After depositing assets, users can receive interest by lending to other users. Assets can also be used as collateral to borrow other assets so that the interest can be offset.
Real-time transparent interest rate: View interest rates transparently in real-time according to market supply and demand of assets.
Since BENQI relies on the over-collateralization of assets to obtain loans, Price Oracles are the key infrastructure for security. Price Oracles determines the computed data of the key protocol parameters, such as loan interest rate and liquidation threshold.
Chainlink’s Oraclesprovide a safe and stable loan guarantee for Benqi
High-quality data：The data of Chainlink is sourced from the verified global trading platforms and markets. The recovery of data was carried out to ensure that relatively accurate prices and avoid manipulation when lending on Benqi.
Node security：Chainlink’s node can also operate successfully during high gas and even when there is a disruption in the parts of the infrastructure to ensure Benqi Protocol’s safety and stability.
Example of QI’s scope of governance:
Interest rate model
Increase assets
Liquidation risk parameters
Change liquidity incentive, adjust incentive measures
Improve the protocol, such as changing the smart contracts and governance processes
Advantages of the Avalanche Protocol：
High-Performance TPS：Supports 4,500 transactions per second
High scalability：Supports multiple cross-chain bridges (Ethereum, Binance Smart Chain. Polkadot, and others), Avalanche Protocol has the chance to become a decentralized financial settlement layer
Rich ecosystem： 970 verified users, more than 2500 assets, compatible with most mainstream blockchain projects.
Investment institutions
Ascensive Assets, Arrington XRP Capital, Dragonfly Capital, Mechanism Capital, TRGC, Woodstock Fund, Spartan Group, Ava Labs, Morningstar Ventures, GBV Capital, Moon Inc, Genblock Capital, Rarestone Capital, Skynet Trading.
Tokenomics
Native token：QI
Total Supply：7.2 billion
Liquidity Mining：50%
Seed Round：5% (24 months of linear unlock)
Private sale：13% (Initial unlock by 15%, linear unlocking over 12 months)
Team：10% (Locked for 12 months, unlocked quarterly in the next 4 years)
Treasury：14% (Locked for 9 months, unlocked quarterly in the next 4 years)
Public sale A：6.1% (Initial unlock of 20%, linear unlocking over 12 months)
Public sale B：0.9% (100% Unlocked)
Lending Pools That Are Currently Supported (can participate in liquidity mining, following the transition of the protocol to DAO, and based on community voting and suggestions, QI native tokens can be used to approve the newly added pools).
QI’s Practical Value Analysis
Practical Value：
Participation in DAO’s governance through voting and proposals
Used for liquidity rewards
Risk：
Partial cash-out by fundraisers and the team
