QI Benqi

Benqi Use Cases

Benqi offers a suite of DeFi protocols built on the Avalanche blockchain, providing various services for managing digital assets. The primary use cases include:

• Lending and Borrowing: Users can lend their digital assets to earn interest and borrow assets through over-collateralized loans. This is facilitated through BENQI Markets, which includes both core and isolated markets for different types of assets.

• Liquid Staking: Benqi tokenizes staked AVAX through BENQI Liquid Staking, issuing sAVAX, a liquid staking token that can be used throughout DeFi while still earning staking rewards.

• Yield Farming: Users can earn yield by providing liquidity to the protocol, making it a popular choice for those seeking high-yield investment opportunities on the Avalanche blockchain.

• Decentralized Exchange (DEX): Benqi offers a DEX for trading assets, featuring a hybrid liquidity model that combines the benefits of an automated market maker (AMM) and an order book, ensuring high liquidity and low slippage for trading.

• Validator Network Participation: Through Ignite, Benqi enables fast and easy deployment of Avalanche validators and Subnets, catering to institutions, developers, and Web3 users.

• Governance: The QI token is used for governance within the Benqi ecosystem, allowing holders to vote on proposals, initiate new proposals, and participate in liquidity mining programs.

Pros of Benqi

• Scalability and Accessibility: Benqi is built on the Avalanche network, offering near-instant finality and low fees, making it highly scalable and accessible for users.
• Multi-Product Liquidity Hub: Benqi combines various DeFi primitives into a single platform with deep liquidity, allowing developers to create dApps that tap into these liquidity pools.
• User-Friendly Interface: Benqi provides a user-friendly interface for DeFi enthusiasts of all levels, making it easy to navigate and use.
• Fast Transactions and High Returns: Benqi leverages the Avalanche network for fast transactions and high returns, making it ideal for users seeking efficient DeFi solutions.
• Support for Multiple Crypto Assets: Benqi supports multiple crypto assets, offering endless possibilities for users to lend, borrow, and earn interest.
• Powerhouse Team: Benqi has a team with solid blockchain and DeFi experience, ensuring continuous innovation and improvement.

Cons of Benqi

• Competition from Other DeFi Giants: Benqi faces competition from other DeFi giants like Compound, Aave, and MakerDAO, which can impact its market share.
• Reliance on Avalanche Network Performance: Benqi's performance is subject to potential technical hiccups on the Avalanche network, which can affect its stability.
• Navigating Regulatory Landscape: Benqi, like other DeFi projects, must navigate the emerging regulatory landscape, which can pose challenges and uncertainties.

Additional Information

• Core Products: Benqi offers several core products, including Benqi Liquid Staking (BLS), Benqi Markets, Ignite, and NodeNod Voting, each designed to enhance user experience and DeFi capabilities.
• Deep Liquidity and Extensive Integrations: Benqi boasts deep liquidity and extensive integrations across the DeFi landscape, making it a leading DeFi protocol on Avalanche.

Founders of Benqi

The founders of Benqi are associated with Rome Blockchain Labs Inc., a firm specializing in decentralized finance software development. Key founders include:

• JD Gagnon: Co-founder and CEO of Rome Blockchain Labs. He graduated with a bachelor's degree in commerce in finance and accounting from the University of Alberta in Edmonton, Canada. Gagnon has experience in creating algorithmic trading platforms and has held various roles in fintech companies.
• Hannu Kuusi: Co-founder with extensive experience in building institutional-grade infrastructure for financial technology (fintech) and military applications.
• Alexander Szul: Co-founder responsible for managing the development of the Benqi liquidity market platform.
• Dan Mgbor: Leading Operations, with a background as a Technology Consultant for a multinational IT service and consulting company.
• Hansen Niu: Leading Strategy, with a background in engineering and previously an Investment Lead at a family office.
• Jason Tuang: Leading DeFi, with a background in finance and previously working at a big 4 accounting firm.

Investors in Benqi

Benqi was founded in 2021 with $6 million in backing from strategic investors including:

• Ascensive Assets
• Dragonfly Capital
• Mechanism Capital
• Arrington XRP Capital
• Spartan Group
• TRGC
• Woodstock Fund
• Ava Labs
• Morningstar Ventures
• GBV Capital
• Skynet Trading Ltd
• Rarestone Capital
• Genblock Capital
• Moon Inc.

No, Benqi is not halal. The reason is that it involves lending and borrowing activities with interest, which is considered riba and not permissible under Islamic finance principles.

Key Factors in Determining Permissibility

• Lending and Borrowing: Benqi's core products include lending and borrowing markets where users can lend, borrow, and earn interest on digital assets, which is not compliant with Islamic finance.
• Interest Mechanisms: The protocol earns yield through interest on loans, which is a form of riba.
• Islamic Finance Principles: Islamic finance prohibits activities involving interest (riba) and excessive speculation (maisir), which are central to Benqi's operations.