Avalanche Lending Protocol BENQI reaches a total value of $ 1 billion, banned just days after its inception
avalanche Loan log BENQI reached a Total Value Locked (TVL) of $ 1 billion just days after its launch.
BENQI, an algorithmic liquidity market protocol, has been around since its inception on Jan.
As noted in a press release shared with CI, this is “on the heels of a collaboration” with the Avalanche Foundation in a joint liquidity mining program to “launch” the BENQI protocol and the “next phase of growth” within Avalanche’s decentralized financial (DeFi) ecosystem.
As confirmed in the announcement, $ 3 million of AVAX will be “provided as liquidity incentives for BENQI users, with additional incentive programs coming soon.”
The AVAX is “offered as a reward to users who lend and borrow AVAX, ETH, LINK, wBTC, USDT and DAI through the protocol with BENQI,” the press release said.
As previously reported, AVAX is Avalanche’s native token. It is “a finite, scarce asset that is used to pay fees, secure the platform by staking, and provide a basic unit of computation between the multiple subnets created on Avalanche,” the announcement said.
BENQI recently completed a $ 6 million investment round supported by the Avalanche Foundation. Mechanism capital, Capital of the dragonfly, Arrington XRP Capital, and the Spartan group.
As stated in the announcement:
“The next phase will focus on expanding into a variety of powerful financial primitives such as money markets. With the introduction of the Avalanche Bridge, a revolutionary secure bridging architecture that uses Intel SGX to support fast, secure, and inexpensive asset transfers between the Avalanche and Ethereum networks, BENQI and other selected projects lead the way, with many more Dapps are expected to start on Avalanche. “
This has been a great week for the team and we are “overwhelmed” by the amount of support our partners and the Avalanche community “showed us when we achieved this,” Co-Founders JD Gagnon said.
He also mentioned that the Avalanche Rush initiative along with the new Avalanche Bridge “has proven to be an important catalyst for the liquidity rush not only for BENQI but also for the rest of the Avalanche DeFi ecosystem”.
“A big thank you to everyone involved! We are currently optimizing the protocol and are planning to work with projects as part of the Avalanche Rush initiative that will lead to Avalanche across all chains. “
John Wu, President of Ava Labs, a team that supports the development of Avalanche, added:
“BENQI kicks off at an important time for Avalanche users and the wider DeFi ecosystem. Its technology adds a missing piece to the puzzle and will make Avalanche even more attractive to users excluded from other networks. This is an exciting step in a broader community initiative to bring more assets and liquidity to the platform. “
As mentioned in the press release, BENQI is being developed in Avalanche’s “highly scalable” network. It “bridges” DeFi and institutional networks “starting with the introduction of BENQI on the Avalanche C-Chain”.
Through BENQI, Avalanche users can “earn interest on their assets, get credit through over-secured loans, and earn QI governance tokens as rewards for providing liquidity for the log and pangolin.”
As mentioned in the announcement, Avalanche is an open source platform for “launching decentralized applications and enterprise blockchain deployments in an interoperable, highly scalable ecosystem”.
Avalanche is “the first decentralized smart contract platform designed for the scale of global finance, with near-instant transaction finality.” Ethereum developers can “quickly build on Avalanche because Solidity works out-of-the-box”.
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