With the increase of awareness of blockchain technology and more everyday decentralized applications are created. It is for the use of an average person, there will come a need for lending systems. BENQI (QI) aims to become one of those systems. Made on the Avalanche C-Chain, it is an ownerless liquidity protocol. Summarily, users can lend and borrow and earn interest with their digital assets through this protocol. The ones providing the liquidity may earn passive income, while borrowers have to set collateral.
BENQI was created in order to create a better alternative in the field of Decentralized Finance (Defi) mostly being executed on Ethereum. This is due to the congestion problem of Ethereum causing expensive gas fees. By making such a protocol where the liquidity is decentralized and highly scalable decentralized platform.
New Developement – Benqi
In recent news, BENQI has come under a partnership to further materialize its dream. They have come into agreement with Pendle. Both protocols have what the other needs i.e BENQI is a lending yield while Pendle is a fixed yield. Together, they are to ensure the essentials required for effective treasury management. $250,000 worth of USDC and AVAX have been deposited into Pendle’sqiUSDC and qiAVAX pools to get rates of 18% and 25% respectively.
BENQI (QI) also came into collaboration with Anchor which is powered by Terra. In doing such, the BENQI staking token, sAVAX will make more yield on both Avalanche and Terra. It will also allow the borrowing of the Terra Stablecoin (UST).
At the time of writing, the current value of QI, the utility token of BENQI, is $0.07239, a 15.43% increase over the past twenty-four hours and with a trading volume of $68,256,761, an increase of about 67% over the past twenty-four hours. Out the of max supply of 7.2 billion Qis, 352.692 million Qis are in the market.
Future Prediction – Benqi (QI)
The prospects of the lending protocol look good as well. Digital Coin Price predicts that the value of QI is going to be $0.0976 by the end of 2022 and will be around $0.14506 by the end of 2026. While Wallet Investor, on the other hand, predicts a declining curve for the coin with its value dropping to $0.00227 by the end of the year.
The best thing about BENQI (QI) is the acknowledgment by its developers that its protocol is not risk-free. It is undergoing audits and the protocol is being kept public and open-sourced for the sake of transparency.
