What is BENQI (QI)?

Deep Dive

1. Ecosystem Fundamentals

BENQI operates as a foundational DeFi hub on Avalanche, often described as the ecosystem's "financial primitive" (BENQI). Its integrated suite addresses core needs: BENQI Liquid Staking allows users to stake AVAX and receive sAVAX, a liquid staking token that can be used across DeFi while still earning staking rewards. BENQI Markets provides over-collateralized lending and borrowing for assets like AVAX and USDC. Ignite simplifies launching Avalanche validators with minimal upfront capital, and Node Voting lets governance participants direct staking delegations.

2. Tokenomics & Governance

The QI token has a fixed total supply of 7.2 billion, all currently in circulation (Overview | BENQI). Its primary utility is staking to accrue BENQI Miles (formerly veQI), which represent voting power. Miles are used for governance, starting with Node Voting, where holders influence how 35% of the protocol's liquid staking pool delegates AVAX to validators. Staking QI also provides benefits like fee discounts for Ignite services, aligning token holding with active protocol participation.

Conclusion

BENQI is fundamentally a multi-product DeFi infrastructure layer designed to generate and manage liquidity for the Avalanche network, with its QI token serving as the engine for community-led governance and rewards. How will its integrated approach to staking, lending, and validation shape the future of Avalanche's DeFi landscape?