BENQI, an algorithmic liquidity market protocol, has attracted over $1B in total assets to its decentralized platform since its launch on August 19th. This comes on the heels of a collaboration with the Avalanche Foundation in a joint liquidity mining program to celebrate the launch of the BENQI protocol and the next phase of growth within Avalanche’s DeFi ecosystem.
$3M of AVAX will be allocated as liquidity incentives for BENQI users, with additional incentive programs coming soon. The AVAX will be offered as rewards to users who are lending and borrowing AVAX, ETH, LINK, wBTC, USDT, and DAI on the protocol with BENQI.
AVAX is the native token of Avalanche. It’s a hard-capped, scarce asset that is used to pay for fees, secure the platform through staking, and provide a basic unit of account between the multiple subnets created on Avalanche.
BENQI recently closed a $6M fundraising round backed by the Avalanche Foundation, Mechanism Capital, Dragonfly Capital, Arrington XRP Capital, & the Spartan Group.
The next phase will focus on expanding upon a variety of high-performance financial primitives, like money markets. With the launch of the Avalanche Bridge, a revolutionary secure bridging architecture that leverages Intel (NASDAQ:INTC) SGX to support quick, secure, and low cost asset transfers between the Avalanche and Ethereum networks, BENQI and other select projects are leading the charge, with many more dapps expected to launch on Avalanche.
"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." – Co-Founder, JD (NASDAQ:JD) Gagnon
“BENQI is launching at a key moment for Avalanche users and the broader DeFi ecosystem. Its technology adds a missing piece to the puzzle, and will make Avalanche even more attractive to users being priced out of other networks,” says John Wu, President of Ava Labs, a team supporting development on Avalanche.
“This is an exciting step in a broader community initiative to bring more assets and liquidity onto the platform.”
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