BENQI, An Algorithmic Liquidity Protocol on Avalanche Blockchain, Hits $1 Billion TVL in a Week

Decentralized non-custodial liquidity market protocol, Benqi, has secured more than $1 billion in assets, coming less than a week after launching on the Avalanche (AVAX) network.

The algorithmic liquidity market protocol enables users to lend, borrow, and earn interest with their digital assets.

Depositors providing liquidity to the protocol may earn passive income while borrowers are able to borrow in an over-collateralized manner.

Benqi leverages the Avalanche network to provide approachability, ease of use, and low fees, as it intends to democratize DeFi.


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On 21 August 2021, 2 days after launch, the platform, announced that it had secured $500 million in Total Value Locked (TVL), with $200 million alone generated in the first 24 hours upon launch.

The performance is impressive considering it took Aave, the leading lending protocol built on Ethereum, a little over eight months to reach the billion-dollar mark.

Benqi’s impressive growth also highlights the upsurge in DeFi activity over the last month where TVL in DeFi climbed from below $1 billion as of July 20, 2021 and currently stands at $154.34 billion. However, Benqi’s showing can also be attributed to a joint liquidity mining program with Avalanche network, whereby $3 million in AVAX (Avalanche’s native token) will be allocated as liquidity incentives for BENQI users.

AVAX is being used to reward users involved in borrowing and lending:

  • AVAX
  • ETH
  • LINK
  • WBTC
  • USDT
  • DAI

via BENQI.

The Avalanche network is now undoubtedly positioned to be a top competitor for Ethereum in DeFi. The platform can handle about 4,500 transactions per second – compared to around:

  • 7 tx/sec for Bitcoin 
  • 14 tx/sec for Ethereum

Avalanche is also able to achieve transaction finality in under 3 seconds.

The blockchain has bridges to enable interoperability across chains like:

  • Ethereum
  • Binance Smart Chain
  • Polkadot


UPDATE: BENQI continues to see incredible growth with now $2 billion TVL in less than 2 weeks since launch


RECOMMENDED READING: An Algorithmic Stablecoin ($UST) is Now Among the Largest Stablecoins


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