What is BENQI: A Comprehensive Guide to the Avalanche-Based Liquidity Protocol

BENQI's Position and Significance

In 2021, BENQI was launched as a decentralized non-custodial liquidity market protocol on Avalanche, aiming to address the need for efficient lending and borrowing in the DeFi space.

As a key player in the DeFi ecosystem on Avalanche, BENQI plays a crucial role in providing users with opportunities to lend and borrow digital assets, as well as participate in network governance and staking.

As of 2025, BENQI has become an integral part of the Avalanche DeFi landscape, with a market cap of $28,497,600 and 38,034 token holders. This report will analyze its technical architecture, market performance, and future potential.

Origins and Development History

Birth Background

BENQI was created in 2021 to expand DeFi capabilities through a suite of yield-generating products. It emerged during the DeFi boom, aiming to provide users with efficient lending and borrowing solutions on the Avalanche network.

BENQI's launch brought new possibilities for users seeking to maximize their digital asset utilization within the Avalanche ecosystem.

Important Milestones

• 2021: Mainnet launch, offering a decentralized lending market on Avalanche.
• 2021: Introduction of QI token, enabling governance participation and liquidity mining.
• 2021: Price reached an all-time high of $0.39417 on August 24.
• Ongoing: Development of Liquid Staking feature for AVAX tokens.

With support from its community and development team, BENQI continues to optimize its technology, security, and real-world applications within the Avalanche ecosystem.

How Does BENQI Work?

Decentralized Control

BENQI operates on the decentralized Avalanche network, free from centralized control by banks or governments. This structure ensures transparency and resistance to attacks, empowering users with greater autonomy and enhancing network resilience.

Blockchain Core

BENQI utilizes the Avalanche blockchain, a public and immutable digital ledger that records all transactions. The Avalanche C-Chain, which is EVM-compatible, allows for seamless integration of BENQI's smart contracts and operations.

Ensuring Fairness

BENQI leverages Avalanche's consensus mechanism to validate transactions and prevent fraudulent activities. Participants can engage in lending, borrowing, and governance activities, contributing to the protocol's security and earning rewards in the form of QI tokens.

Secure Transactions

BENQI employs smart contract technology to facilitate secure lending and borrowing:

• Users can supply assets to earn interest or borrow against collateral.
• The QI token enables governance participation and staking in the security module.
• Transactions are secured through the underlying Avalanche network's cryptographic mechanisms.

Additional features like overcollateralization and the development of Liquid Staking enhance the protocol's security and utility.

BENQI's Market Performance

Circulation Overview

As of November 19, 2025, BENQI's circulating supply is 7,200,000,000 tokens, which is equal to its total supply of 7,200,000,000.

Price Fluctuations

BENQI reached its all-time high of $0.39417 on August 24, 2021. Its lowest price was $0.00323513, recorded on October 11, 2025. These fluctuations reflect market sentiment, adoption trends, and external factors.

Click to view the current market price of BENQI

On-chain Metrics

• Number of Holders: 38,034 (indicating community engagement)

BENQI Ecosystem Applications and Partnerships

Core Use Cases

BENQI's ecosystem supports various applications:

• DeFi: Lending and borrowing market, providing decentralized liquidity.
• Liquid Staking: Enables users to stake AVAX tokens on the Avalanche C-Chain, promoting capital efficiency in DeFi.

Strategic Collaborations

BENQI has established partnerships with Avalanche, enhancing its technical capabilities and market influence. These partnerships provide a solid foundation for BENQI's ecosystem expansion.

Controversies and Challenges

BENQI faces the following challenges:

• Technical Hurdles: Potential scalability issues on the Avalanche network
• Regulatory Risks: Uncertain regulatory environment for DeFi platforms
• Competitive Pressure: Competition from other DeFi protocols on Avalanche and other blockchains

These issues have sparked discussions within the community and market, driving BENQI's continuous innovation.

BENQI Community and Social Media Atmosphere

Fan Enthusiasm

BENQI's community is vibrant, with 38,034 token holders as of November 19, 2025. On X platform, related posts and hashtags (such as #BENQI) frequently trend, reflecting community engagement. New product launches and yield opportunities ignite community enthusiasm.

Social Media Sentiment

Sentiment on X presents a mixed picture:

• Supporters praise BENQI's high yields and integration with Avalanche, viewing it as a "cornerstone of DeFi on Avalanche".
• Critics focus on price volatility and potential smart contract risks.

Recent trends show cautious optimism amidst market fluctuations.

Hot Topics

X users actively discuss BENQI's governance proposals, yield strategies, and integration with other DeFi protocols, showcasing its transformative potential and the challenges of navigating the evolving DeFi landscape.

More Information Sources for BENQI

• Official Website: Visit BENQI's official website for features, use cases, and latest updates.
• Whitepaper: BENQI's technical documentation details its architecture, goals, and vision.
• X Updates: On X platform, BENQI uses @BenqiFinance, actively posting about protocol updates, community events, and partnership news, generating significant engagement.

BENQI Future Roadmap

• Ongoing: Continue to enhance the lending and borrowing market
• Ecosystem Goals: Expand the range of supported assets and improve integration with the broader Avalanche ecosystem
• Long-term Vision: Become a leading DeFi protocol on Avalanche, offering a comprehensive suite of financial services

How to Participate in BENQI?

1. Purchase Channels: Buy BENQI tokens on Gate.com
2. Storage Solutions: Use Web3 wallets compatible with Avalanche C-Chain for secure storage
3. Participate in Governance: Engage in community decisions through BENQI's governance framework
4. Build the Ecosystem: Visit BENQI's developer documentation to contribute or build integrations

Summary

BENQI is redefining decentralized finance on Avalanche, offering liquidity markets and innovative staking solutions. Its active community, rich resources, and strong market presence make it stand out in the DeFi space. Despite facing regulatory uncertainties and technical challenges, BENQI's innovative spirit and clear roadmap position it as a significant player in the future of decentralized technologies. Whether you're a newcomer or an experienced user, BENQI is worth watching and participating in.

FAQ

How does BenQi work?

BenQi operates as a DeFi platform on Avalanche, enabling users to lend, borrow, and earn interest on crypto assets through smart contracts and liquidity pools.

Is BenQi a good investment?

Yes, BenQi shows promise. Its current low price indicates potential for significant future gains, making it an attractive investment option in the crypto market.

How much money is 1 qi?

As of 2025-11-18, 1 qi is worth approximately $0.0001. The exact value may fluctuate due to market conditions.

What is the benqi token?

BENQI (QI) is a governance token for a DeFi protocol on Avalanche. It allows users to stake, lend, and participate in network decisions. QI holders can influence protocol upgrades and validator delegations.