Most cryptocurrency lending and borrowing protocols are built on the Ethereum blockchain, but transaction fees are ridiculously high and the blockchain suffers congestion at times.
BENQI has come to solve this with the introduction of a Liquidity Market Protocol on a highly scalable and decentralized platform to make experience more user-friendly and transactions cheaper and faster.
What BENQI Offers
BENQI was founded to provide a superior experience on the Ethereum-DeFi ecosystem. The preliminary research saw the potential in Avalanche to become the next successor for assets and smart contracts.
If you currently feel ‘stuck’ on the Ethereum network and would like to transfer your crypto assets to the Avalanche network, provisions have been made for that, with bridges to other blockchains being built including an existing Ethereum to Avalanche (AEB) bridge.
BENQI is highly user-friendly so both DeFi enthusiasts and crypto-newbies are able to carry out transactions at a cheaper rate and with lightning speed.
What Makes BENQI Different?
BENQI is the first lending and borrowing protocol on Avalanche – meaning they’re setting the foundation for a whole new level of DeFi. The Avalanche network is highly decentralized with over 900 validator nodes compared to the Binance Smart Chain which has just 21 validator nodes.
BENQI has built the first lending and borrowing protocol on Avalanche so users do not feel the pinch of transaction fees and experience lightning-speed transactions while also enjoying the security of a decentralized network.
BENQI is backed by strategic investors which include Ascensive Assets, Dragonfly Capital, Mechanism, Arrington XRP, MarketAcross, Spartan, TRGC, Woodstock, AVA Labs, Morningstar Ventures, GBV, Skynet Trading, Moon Inc, Rarestone Capital, MarketAcross and Genblock Capital.
How BENQI Works
BENQI operates on Avalanche Contract Chain (C-Chain) – an Ethereum Virtual Machine (EVM) compatible chain which works using the Metamask wallet, similar to the Binance Smart Chain. Users would be rewarded with QI governance token as the protocol will be running Liquidity Mining (LM) incentives for 5 years.
This means that liquidity providers would be able to earn passive income through liquidity mining by receiving a percentage of the trading fees.
The lending protocol is built especially for those that wish to hold their crypto assets for a long period but are still looking to venture into other opportunities for additional capital.
Users will be able to instantly supply and withdraw liquidity from a shared liquidity market, to borrow using their supplied assets as collateral, and have a live and transparent view of interest rates around the clock based on the asset’s market supply and demand.
All of these transactions would be carried out seamlessly without having to worry about network congestion, high transaction fees, and the speed of transactions anymore.
Featured Image by “WikiImages” via Pixabay.com
