What is BENQI: A Comprehensive Guide to the DeFi Lending Protocol on Avalanche

BENQI's Positioning and Significance

In 2021, BENQI (QI) 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 the ability 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 ecosystem, with a market cap of $28,497,599.99 and 38,034 holders. This article will delve into its technical architecture, market performance, and future potential.

Origin 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 services 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, introducing lending and borrowing functionality on Avalanche.
• Ongoing development of Liquid Staking, allowing users to stake AVAX tokens on the EVM-compatible Avalanche C-Chain.
• Price reached an all-time high of $0.39417 on August 24, 2021.

BENQI continues to optimize its technology, security, and real-world applications with support from its community and development team.

How Does BENQI Work?

Decentralized Control

BENQI operates on a decentralized network of computers (nodes) on the Avalanche blockchain, free from central bank or government control. These nodes collaborate to validate transactions, ensuring system transparency and attack resistance, empowering users with greater autonomy and enhancing network resilience.

Blockchain Core

BENQI's operations are recorded on the Avalanche blockchain, a public, immutable digital ledger that records every transaction. Transactions are grouped into blocks and linked through cryptographic hashes, forming a secure chain. Anyone can view the records, establishing trust without intermediaries.

Ensuring Fairness

BENQI utilizes Avalanche's consensus mechanism to validate transactions and prevent fraudulent activities such as double-spending. Participants maintain network security through activities like staking and running nodes, receiving rewards in QI tokens.

Secure Transactions

BENQI employs public-private key encryption to protect transactions:

• Private keys (similar to secret passwords) are used to sign transactions
• Public keys (similar to account numbers) are used to verify ownership

This mechanism ensures fund security while maintaining pseudo-anonymity for transactions.

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 multiple applications:

• DeFi: Lending and borrowing markets, providing decentralized liquidity.
• Liquid Staking: Allows users to stake AVAX tokens on the Avalanche C-chain, enabling capital efficiency.

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 Issues: Potential scalability concerns on the Avalanche network.
• Regulatory Risks: Uncertainty in DeFi regulations.
• 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.

Social Media Sentiment

Sentiment on X appears mixed:

• Supporters praise BENQI's DeFi capabilities and yield opportunities.
• Critics focus on price volatility and DeFi risks.

Recent trends show cautious optimism amidst market fluctuations.

Hot Topics

X users actively discuss BENQI's role in Avalanche's DeFi ecosystem, yield farming strategies, and governance proposals.

More Information Sources for BENQI

• Official Website: Visit BENQI's official website for features, use cases, and latest updates.
• Twitter Updates: On X platform, BENQI uses @BenqiFinance, actively posting about protocol updates, community events, and partnership news.

BENQI's Future Roadmap

• Ecosystem Goals: Expand DeFi offerings on Avalanche
• Long-term Vision: Become a leading liquidity protocol in the Avalanche ecosystem

How to Participate in BENQI?

1. Purchase Channels: Buy BENQI on Gate.com
2. Storage Solutions: Use Web3 wallets compatible with Avalanche C-chain
3. Participate in Governance: Through the BENQI DAO
4. Build on Ecosystem: Visit BENQI's documentation to integrate or develop on the protocol

Summary

BENQI is redefining DeFi on Avalanche, offering liquidity markets and staking solutions. Its active community, rich resources, and strong market presence make it stand out in the cryptocurrency space. Despite facing regulatory uncertainties and competitive pressures, BENQI's innovative spirit and clear roadmap position it as an important player in the future of decentralized finance. 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.