BENQI is a decentralized finance (DeFi) protocol built on the Avalanche blockchain, offering scalable and accessible financial services. Its native token, QI, plays a pivotal role in governance and utility within the ecosystem.
What Is BENQI?
BENQI comprises two main components:
BENQI Liquid Staking (BLS): This feature allows users to stake AVAX tokens and receive sAVAX, a yield-bearing token that can be utilized across DeFi applications without the usual lock-up periods.
BENQI Liquidity Market (BLM): A lending and borrowing platform where users can deposit assets to earn interest or borrow assets in an over-collateralized manner, all governed by smart contracts.
The Role of QI Token
The QI token serves dual purposes within the BENQI ecosystem:
1. Governance
QI token holders can participate in the governance of the protocol by voting on BENQI Improvement Proposals (BIPs). This decentralized approach ensures that the community has a say in the platform's development.
2. Utility
Staking: Users can stake QI tokens to receive veQI, a vote-escrowed token that allows them to delegate AVAX staking to their chosen validators, earning additional rewards.
Security Module: QI tokens can be staked into a safety module, securing the protocol against potential shortfall events and earning a portion of protocol reserves in return.
Liquidity Mining: QI tokens are distributed through liquidity mining programs, incentivizing users to provide liquidity to the protocol.
Tokenomics and Distribution
The total supply of QI tokens is capped at 7.2 billion. The distribution is as follows:
Liquidity Mining Program: 45%
Token Sale: 25%
Treasury: 15%
Team: 10%
Exchange Liquidity: 5%
Conclusion
BENQI offers a comprehensive DeFi solution on the Avalanche network, with the QI token at its core. By participating in governance, staking, and liquidity mining, users can actively engage in the platform's growth and benefit from its decentralized financial services.
