BENQI (QI) Project Analysis-CoinW Institute

3 min readNov 24, 2022

BENQI (QI) Project Analysis

1.Institute Short Review

benqi is the leading lending protocol on avalanche, through which users are able to earn interest on their assets and access credit through overcollateralization. After the project token went live on Coinan at the end of last year, it saw a wave of highs, with the token price rising nearly 50 times compared to the public offering. But as the market sentiment cooled, the token price went all the way down and is now back near the initial public offering price. And benqi itself belongs to the avalanche on the more high-quality projects, with the subsequent recovery of the market recovery and defi heat, there is hope to usher in a wave of restorative market, so it is worth to pay attention.

2.The recent outbreak point

After the token was launched, it rebounded from oversold.

3.Project introduction

benqi is a decentralized financial protocol, built on top of the Avalanche network. benqi protocol consists of benqi liquidity pledge and benqi liquidity market.

benqi liquidity pledge (bls) is Avalanche’s liquidity pledge solution that allows users to use locked-in funds pledged by Avalanche verifiers. This feature provides additional utility for income based assets without lock-up periods or cumbersome cross-chain transfers.

benqi Liquidity Market (blm) is benqi’s lending protocol. Users can borrow and lend crypto assets on the shelf in a permissionless manner via smart contracts, without the involvement of a human intermediary. Users earn revenue by depositing assets in the market and borrowing is done on an over-collateralized basis.

4.Token role

The qi token is the governance token of benqi and is responsible for overseeing upgrades and changes to the benqi protocol. Holding tokens allows qi to make decisions and vote on proposals made by benqi dao. And in benqi’s liquidity pledge, users can pledge qi to get veqi, providing users with higher efficiency of capital operation.

5.Token allocation

Total volume: 7.2 billion pieces

Liquidity mining: 45%

Token sales: 25%

Treasury: 15%

Team: 10%

Exchange liquidity: 5%

6. Investment Institutions

benqi closed a $6 million strategic funding round in early ’21 led by Ascensive Assets, Arrington XRP Capital, Dragonfly Capital, Mechanism Capital, TRGC, Woodstock Fund, Spartan Group, Ava Labs Ava Labs, Morningstar Ventures, GBV Capital, Moon Inc, Genblock Capital, Rarestone Capital, Skynet Trading and other institutions have participated in the financing.

7.Project outlook

benqi’s explosive growth in the early years was mainly due to the rapid growth of the Avalanche Protocol ecosystem since last year, as well as the stand and strong support from the Avalanche Protocol Foundation for the project. It is also because of this that benqi, as the first major lending platform of the avalanche ecology, the subsequent development ceiling also depends on the overall ecological scale of the avalanche. Now, as the market recovers and the ecology of new public chains will be gradually improved, benqi, as the jewel on the Avalanche Protocol, is even more anticipated for its performance.