By Tyler S - Cryptocurrency Broker - 25-08-2021
A market protocol for liquidity, BENQI (QI), has recently seen an exponential growth in its total value locked (TVL). The protocol is an algorithmic market tool used to connect Decentralised Finance (DeFi) initiatives with institutional networks. BENQI is built on the Avalanche (AVAX) network and has greatly benefitted from the network's latest mainnet release. The mainnet launch occurred on August 19th, since then, the protocol has witnessed a high rise in TVL exceeding $1 billion.
The protocol grew its TVL due to its partnership with the Avalanche (AVAX) Foundation. BENQI collaborated with the foundation to participate in a liquidity mining program to which all parties benefitted and rejoiced in the acceleration for the DeFi. Avalanche's native token AVAX is reportedly used as a reward within the liquidity mining program. BENQI users are given AVAX incentives when they're borrowing and lending various cryptoassets available. According to the protocol, users can buy QI, its native cryptocurrency, to use the token for governance on the platform.
Significantly, BENQI has raised just over $1 billion after launching this week. In comparison to other decentralised protocols, BENQI's achievement is unexpectedly remarkable as initiatives such as Aave (AAVE) took a little less than a year to hit $1 billion. BENQI is a money market tool that allows users to borrow and lend through the protocol. BENQI users can invest in QI and other cryptocurrencies to lend their assets to earn passive income as the users are providing risk-free rates of