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- BENQI gains over $1 billion in total assets since its launch on August 19th.
- $3 million worth of AVAX is set aside as liquidity incentives for BENQI users.
- Having raised $6 million, the next phase will further expand the protocol’s abilities.
In a remarkable show of support and trust, BENQI has over $1 billion in terms of total assets on its decentralized platform. This is indeed a huge call for celebration as the platform just went live on August 19, 2021.
This is all in thanks to the liquidity mining program in collaboration with Avalanche for boosting DeFi growth. Specifically, BENQI — an algorithmic liquidity market protocol. It will mark the next phase of growth for Avalanche’s DeFi ecosystem.
To highlight, $3M of AVAX will be set aside as liquidity incentives for BENQI users. Moreover, additional incentive programs will be coming soon. The allocated AVAX will be given as rewards to the users who will lend and borrow AVAX, USDT, ETH, wBTC, LINK, and DAI on the network with BENQI.
To specify, AVAX is the native token of Avalanche. It is a hard-capped, scarce asset that can be used to pay for fees. It also secures the platform through staking and provides a basic unit of account between the multiple subnets created on Avalanche. Together BENQI and Avalanche bring high-performance borrowing and lending to their users.
Co-Founder of BENQI, JD Gagnon, says
This has been an incredible week for the team and we are overwhelmed by the amount of support our partners and the Avalanche community has shown us leading up to this. The Avalanche Rush initiative coupled with the new Avalanche Bridge has proved to be a major catalyst for the rush of liquidity to not only BENQI, but the rest of the Avalanche DeFi ecosystem. A big thank you to everyone involved! We’re currently optimizing the protocol, and have plans to collaborate with projects going cross-chain to Avalanche as part of the Avalanche Rush initiative.
Similarly, the President of Ava Labs, John Wu, says that BENQI is coming out at a key moment. All Avalanche users as well as the broader DeFi ecosystem will benefit from its launch. He draws light to the fact that BENQI’s technology adds a missing piece to the puzzle, and will make Avalanche even more attractive to users.
Recently, BENQI secured $6M in a fundraising round backed by many notable companies. These include the Avalanche Foundation, Arrington XRP Capital, Dragonfly Capital, Mechanism Capital, and the Spartan Group.
Therefore, the next phase will focus on expanding upon a variety of high-performance financial primitives, such as money markets. All in all, the launch of the Avalanche Bridge, will put BENQI and other select projects at the lead, with many more DApps set to launch on Avalanche.