Community Trust ScoreVerified
BENQI Expressed: BENQI has enabled USDT as collateral, starting with a Collateral Factor of 65% This decision was made in conjunction with gauntlenetwork, and the parameters will be continuously reviewed to optimize for capital efficiency. The change is live.
For clarity, Collateral Factor, the maximum amount users can borrow is limited by the collateral factors of the assets they have supplied.
BENQI is an algorithmic liquidity market protocol on Avalanche. Those who contribute their assets to the liquidity market protocol will be able to earn interest on their assets. They can access liquidity on-demand with low fees. Users can participate in governing the protocol by earning Qi.
Gauntle Network is driving understanding and participation in the financial systems of the future.
Decentralized Finance (DeFi) has grown exponentially over the past 2 years. Majority of the DeFi’s activity is on Ethereum. The network began to experience congestion problems which has led to high network fees. This is a very significant barrier for both old and new users with smaller capital to justify engaging in DeFi.
BENQI focuses on making it possible to effortlessly lend, borrow, and earn interest by using digital assets. Depositors who contribute to the liquidity of the protocol will be able to earn passive income and borrowers will be able to borrow in an over-collateralized manner.
For clarity, Over-collateralization (OC) is the provision of collateral that is worth more than enough to cover potential losses in cases of default. For example, a business owner seeking a loan could offer property or equipment worth 10% or 20% more than the amount being borrowed.
BENQI focuses on making liquidity supply, withdrawal, and borrowing pretty instant.
Funds are administered by Smart Contracts. Depositors and Lenders will be provided tokenized yield-bearing tokens (QiTokens) that will be used to withdraw funds from the pool on-demand when required. The QiTokens can be transferred and traded as any other crypto-asset on Avalanche.
No protocol in the blockchain is absolutely risk free. The risks about the protocol might consist of potentially Smart Contracts risks and Liquidation risks. The BENQI team are taking the required steps to minimize the risks as much as possible by undergoing audits and keeping the protocol public and open sourced.
Community response: QI plus VET = Money in the Bank.
QI will explode and 100x is coming. VERY bullish news, QI here we go. You doing great guys.
Funny we give you stable coin and take loan to pay interest to spend our money!
