Binance announced last Monday, November 15, through its Twitter account, the launch of Benqi Finance, a decentralized non-custodial liquidity market protocol in Avalanche.
“BENQI is a decentralized non-custodial liquidity market protocol at Avalanche. DeFi scale with a suite of performance generating products. The platform offers a loan and loan marketplace, with Liquid Staking under development. Users can borrow and lend tokens, participate in the governance of the network and in betting”, he said through an article published on his website.
The company explained that QI is BENQI’s native token with the following functions:
• Governance: QI token holders will be able to participate in the governance of the protocol. Through governance, users can influence subsequent product and primitive aspects to be released under BENQI.
• Liquidity mining: users can participate in liquidity pools in DEXes (ie Pangolin) or in the pool of QI tokens within the BENQI protocol. In exchange for providing liquidity, users are rewarded with QI and other tokens.
• Stakeout: users will be able to stake QI on a security module and obtain a part of the protocol reserves to secure the protocol against a deficit event.
In addition, BENQI consists of the following main components that work together:
• Loan and Loan Marketplace – Allows users to lend, borrow, and earn interest on their digital assets. Depositors who provide liquidity to the protocol can earn passive income, while borrowers can borrow loans by over-guaranteeing the assets backed by the protocol.
• Liquid Staking: users will be able to stake their AVAX token on the EVM compatible Avalanche C-Chain. The protocol also tokenizes staked assets, enabling composability of the staked asset and giving users more opportunities to unlock capital to use within the DeFi space.
“The project has raised a total of $ 9.93MM USD from 4 rounds of token sales, where 5.93%, 12.07%, 6.10% and 0.90% of the total supply of QI tokens has been sold for $ 0.0030, $ 0.0055, $ 0.0075 and $ 0.0090 USD / QI respectively”, he specified.