Benqi

Lending

Benqi is a decentralized money market built on the Avalanche network for permissionless lending and borrowing.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Benqi offers users a more seamless experience in supplying and borrowing supported assets given a visible borrowing limit dashboard along with a health factor indicator that provides ample warning on borrowed positions that are close to liquidation.
What we like less
The developer team still has a lot of control on the protocol's future through the ability to affect key parameters around economics and security.
What it means for you
Benqi is the best money market platform to earn interest on your crypto assets on the Avalanche network given higher interest rates from ongoing token emissions.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $226.7M (Rank #51)
  • TVL Ranking by Lending: #11
  • Blockchain: Avalanche
  • Chain TVL
    • Avalanche: $226.75M
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; Halborn audited in May 2021
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 5% by total value locked reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • Cross-collateral markets are exposed to systemic risks as each asset creates incremental risks for the platform as a whole
  • Basic controls in place to prevent risky borrowing
  • Basic mechanisms in place to incentivize liquidations
  • Solid methods to accrue protocol reserves
  • Benqi is the largest lending protocol on the Avalanche chain
Things to know about Benqi

How Benqi (lending) works

Benqi's lending protocol consists of a decentralized system of lending pools. Users deposit assets they want to lend into a liquidity pool and borrowers draw from the pool when they want to take out a loan. Benqi borrowers must first supply assets before they can borrow. Given the high volatility of crypto assets, borrowers must post more collateral than the value of the loan, or commonly referred to as overcollateralization. Interest rates on Benqi are driven by market supply and demand. To facilitate this activity, Benqi issues QiTokens to lenders that reflect accruing interest on the underlying token.

How Benqi (lending) makes money

Benqi's lending platform currently charges a reserve factor that allocates a share of borrowers' fees to the protocol. Each supported asset has a reserve factor that determines how much goes into the reserve.

How you make money on Benqi (lending)

You earn lending fees on Benqi by depositing their idle crypto assets to be used by borrowers looking for leverage. Benqi also offers ongoing protocol incentives in its native QI token to bootstrap demand.

Benqi Pools
Benqi AVAX Lending
1.7%
Yield
$155M
TVL
Risk
C
Protocol
Benqi
Chain
Avalanche
Benqi AVAX Lending
2.2%
Yield
$27M
TVL
Risk
B
Protocol
Benqi
Chain
Avalanche
Benqi BTC Lending
0.2%
Yield
$18M
TVL
Risk
C
Protocol
Benqi
Chain
Avalanche
Benqi USD Lending
12%
Yield
$4M
TVL
Risk
D
Protocol
Benqi
Chain
Avalanche
Benqi USD Lending
17.4%
Yield
$3M
TVL
Risk
C
Protocol
Benqi
Chain
Avalanche
Benqi USD Lending
19.1%
Yield
$2M
TVL
Risk
C
Protocol
Benqi
Chain
Avalanche