BENQI

An algorithmic liquidity market and liquid staking protocol on Avalanche — lend, borrow, and stake digital assets without giving up custody.

Open App
Avalanche C-Chain
sAVAX · QI · Ignite

Why BENQI

Real yield, no intermediaries

Interest rates on the BENQI platform adjust in real time based on pool utilization. You earn or pay rates that reflect actual on-chain supply and demand — not a number set by a committee.

Liquid staking that stays liquid

Stake AVAX and receive sAVAX immediately. That token is composable — take it to Uniswap, use it as collateral, or hold it while rewards accumulate at roughly 5% APY.

Validator access via QI

Running an Avalanche validator normally requires 2,000 AVAX. The Ignite program changes that. Users stake QI tokens to cover part of the hardware and bonding cost, opening the door to more participants.

Audited and transparent

The team behind BENQI published audit reports from independent security firms. All smart contract code is verifiable on-chain. No hidden admin keys.

How it works

1

Connect your wallet

Use MetaMask or any WalletConnect-compatible wallet set to Avalanche C-Chain (chain ID 43114). The connection takes under ten seconds.

2

Choose an action

The dashboard presents four clear paths: Lending & Borrowing, Liquid Staking, Ignite, and Node Voting. Pick the one that fits your goal. You can explore all four from a single account.

3

Supply or stake assets

To lend: approve the asset and deposit. To stake: send AVAX and receive sAVAX at the current exchange rate. Both operations confirm on-chain in one transaction, similar to how Uniswap v3 handles single-sided liquidity.

4

Monitor your position

The BENQI's protocol dashboard shows your supply APY, borrow APY, health factor, and sAVAX balance in one view. Set personal alerts if your health factor approaches 1.0.

5

Withdraw anytime

There is no lock-up on supplied assets beyond the constraint of active borrows. Redeem sAVAX back to AVAX whenever the redemption queue clears — usually within the same day.

See full technical documentation on ERC-20 token standards and check the knowledge base for in-depth guides.

Key features

Algorithmic interest rates

Rates update every block based on utilization. High demand pushes borrowing rates up; low demand brings them down. No manual intervention needed.

sAVAX liquid staking token

Deposit AVAX, receive sAVAX. The token's exchange rate vs AVAX rises over time as staking rewards accrue. Currently tracking ~5.03% APY on the Avalanche network.

Ignite validator program

The protocol subsidizes validator node setup using QI. This mechanism lowers the capital barrier to becoming an Avalanche validator from a prohibitive amount to something reachable.

Node voting with Miles

QI holders earn Miles by participating in governance. Miles can then be voted toward specific validators, directing liquid staking delegations and earning AVAX rewards.

Multi-asset collateral

The lending market supports AVAX, sAVAX, USDC, USDT, and other approved assets. Each asset has its own collateral factor set by governance, not by the core team unilaterally.

Built-in swap module

A lightweight swap feature inside the BENQI app handles common token conversions without routing users to an external DEX. Useful for small rebalances. Built with Hardhat for local testing.

Integrations and composability

sAVAX and other BENQI tokens are accepted by third-party protocols on Avalanche. The info page lists current integration partners and API access details.

BENQI by the numbers

$400M+
Total Value Locked (TVL)
5%
sAVAX staking APY
4+
Years live on Avalanche
100K+
Unique wallets served

Figures are approximate and reflect publicly available on-chain data. See Wikipedia — Decentralized Finance for broader DeFi context. Explore the knowledge section for protocol-specific metrics.

FAQ

What is BENQI?

BENQI is an algorithmic liquidity market and liquid staking protocol built on Avalanche. It lets users lend assets for yield, borrow against collateral, and stake AVAX for sAVAX — all without relying on a centralized custodian.

How do I start lending on BENQI?

Connect a wallet to Avalanche C-Chain, go to the Lending & Borrowing section, pick an asset, and click Supply. The protocol immediately starts crediting interest to your balance. No minimum deposit.

What is sAVAX?

sAVAX is the liquid staking receipt token you receive when depositing AVAX into the BENQI's staking contract. Its exchange rate against AVAX grows continuously as validator rewards arrive on-chain.

Is BENQI safe and audited?

The protocol has passed multiple independent security audits. Reports are public. The team addressed all critical and high-severity findings before mainnet deployment, and no admin key can drain user funds unilaterally.

How do I borrow assets on BENQI?

First supply collateral — say, AVAX or sAVAX. Then open the Borrow tab, choose a stablecoin or other listed asset, enter an amount below your credit limit, and confirm. Watch your health factor stay above 1.0.

What networks does BENQI support?

The BENQI platform runs on Avalanche C-Chain (chain ID 43114). The team has discussed EVM-compatible expansion — including Base — but no additional deployments are finalized as of the most recent governance vote.

Can I use BENQI if I am new to DeFi?

Absolutely. Start by supplying a single stablecoin to the lending pool and observing how interest accrues. That is a low-risk entry point. Borrowing and staking can come later once you feel comfortable with the dashboard.

Why should I stake AVAX through BENQI instead of a centralized exchange?

Staking through the protocol returns sAVAX, which you control in your own wallet. A centralized service holds your AVAX for you. With sAVAX you can simultaneously earn staking yield and use the token as collateral on other DeFi platforms.

What is the QI token?

QI is the governance token of BENQI. It gives holders voting power over protocol parameters — interest rate models, collateral factors, supported assets. QI is also staked in the Ignite program to subsidize validator costs.

How does the Ignite program work?

Users stake QI tokens into Ignite. The protocol uses the staked QI value as partial collateral toward an Avalanche validator's bonding requirement, effectively reducing the AVAX a would-be validator must provide themselves.

What is the current sAVAX APY?

The protocol's dashboard displays the live rate — currently around 5.03% APY. This figure moves with Avalanche validator rewards and total AVAX staked through BENQI. Check the dashboard before making staking decisions.

Can I lose funds if a liquidation happens?

If your collateral ratio drops below the liquidation threshold, a liquidator can repay part of your debt and receive a portion of your collateral at a discount. Keep your health factor comfortably above 1.0 to avoid this.

How does BENQI calculate interest rates?

Rates are purely algorithmic. The contract reads the current ratio of borrowed assets to total supplied assets — utilization — and maps that ratio to a rate curve. Higher utilization means higher borrowing rates, incentivizing fresh supply.

Where can I find the BENQI smart contract source code?

All contracts are published on GitHub and verified on the Avalanche C-Chain block explorer. Developers can fork, test locally with Hardhat, and propose improvements via governance.