Just days after its launch, the benqi algorithmic liquidity market protocol successfully reached an impressive volume of assets of US $ 1 billion. This outstanding performance was achieved after Benzi’s release on August 19. Since BENQI and the Avalanche Foundation worked together to implement a joint liquidity mining program, these assets have been invested in a fully decentralized platform.
The BenQi protocol aims to help Avalanche users receive interest on their assets, collect Qi management tokens in exchange for liquidity provided under the protocol, and obtain loans through over-secured loans. The protocol was published in Avalanche C-chain, one of the sections of the Avalanche Defi ecosystem. In the long term, the main goal is to serve as a secure bridge that will connect the decentralized financial sector (Defi) to corporate networks.
Dapps (decentralized applications) as well as a wider ecosystem an open source platform created and initialized as an avalanche, health services, compatibility and scalability in existing institutional block chain implementation.
Avalanche’s own token, Avax, is currently highly valued in terms of value, which is no coincidence given that it started with BENQI after the announcement of a liquidity mining plan. Three million Avax will be given to benqi users as a liquidity incentive, and new incentive plans are already being developed. AVAX will be awarded as a reward to those who borrow AVAX, ETH, LINK, wBTC, USDT and Dai as part of the Benqi protocol.
Unlike Avalanche-based BENQI, which managed to reach $ 1 billion TVL in just a few days, it took 8 months to reach that breakout point.
The next phase of the project will focus on optimizing protocol and moving towards attractive financial primitives such as money markets.
BENQI and other related projects are currently taking on a leadership role, while others
