crypto-news-flash.com
- BENQI has introduced liquid staking on Avalanche, streamlining the staking process by connecting users with efficient validators on the network.
- Leveraging Chainlink’s Proof of Reserve (PoR) and Chainlink Automation, BENQI enhances security measures to protect user funds by swiftly responding to anomalies and discrepancies in asset reserves.
In recent developments, BENQI has introduced liquid staking on Avalanche, presenting a solution to the complexities associated with maintaining staking infrastructure. By enabling users to connect with efficient validators on the Avalanche network, BENQI simplifies the staking process.
Notably, BENQI established its lending market in 2021, followed by the introduction of liquid staking in 2022. With a history of navigating through volatile periods while steadily expanding its user base, BENQI emerges as a reliable and proven platform.
Exploring the advantages of building on Avalanche, the team behind BENQI highlights the blockchain’s exceptional performance, particularly its high throughput and rapid finality on the C-chain. Leveraging subnets, Avalanche addresses, the blockchain scaling trilemma offers BENQI an avenue for scalability.
Furthermore, BENQI’s involvement in validating both existing and upcoming subnets adds to its significance within the Avalanche ecosystem. BENQI achieves timely deployment of liquid staking capabilities through its utilization of top-tier oracle infrastructure, such as Chainlink.
BENQI recognizes the unparalleled reliability and security offered by Chainlink through its dependable oracles, per the Crypto News Flash report. By leveraging Chainlink’s services, BENQI ensures access to precise and timely price data across a multitude of assets. This data empowers users on the BENQI platform to engage in lending, borrowing, and liquidation activities with confidence, knowing that they are operating with accurate and secure information.
Leveraging Chainlink’s Proof of Reserve
BENQI has integrated Chainlink Proof of Reserve (PoR) to oversee reserves on the Avalanche Bridge, facilitating the bridging of assets from the Ethereum mainnet. While the bridge relies on SGX and bridge nodes for security, PoR serves as an additional layer of protection in rare instances of anomalies, such as discrepancies in assets backing the bridged assets on Avalanche.
To enhance security measures, BENQI leverages Chainlink Automation, an efficient and highly reliable smart contract automation service. In the event of anomalies detected through a Proof of Reserve feed, such as mismatched reserves backing a wrapped asset, Chainlink Automation promptly halts supplying and borrowing functions in affected BENQI pools. This rapid response helps mitigate potential risks, including arbitrage opportunities and cross-chain exploits.
The decision to integrate Chainlink was further reinforced by its user-friendly technical documentation and seamless integration capabilities with existing infrastructure. With past instances in the Web3 ecosystem where the value of bridged assets surpassed their backing reserves, resulting in significant protocol debts, BENQI prioritizes the security of user funds.
By employing Chainlink Proof of Reserve to swiftly pause BENQI transactions upon detecting any discrepancies, the protocol ensures solvency and instills confidence among users regarding the safety of funds held on the BENQI platform. As reported by Crypto News Flash, Chainlink also partnered with Etherisc for seamless cross-chain integration.