Benqi (QI)

Lending and Borrowing

Benqi lets users lend their crypto assets to earn interest or borrow assets by using their crypto as collateral. This happens through a decentralized liquidity market on the Avalanche blockchain.

Liquid Staking

Users can stake AVAX tokens and receive sAVAX, a liquid staking token that grows in value over time. sAVAX can be used across many DeFi protocols, increasing capital efficiency.

Governance

The QI token is used for governance, allowing holders to vote on proposals that affect the Benqi protocol and its future development.

Developer Tools

Benqi offers tools like Ignite, which helps users and developers launch Avalanche validators and subnets easily, with flexible payment options.

Ecosystem Integration

Benqi supports a wide range of assets, including tokenized real-world assets, and aims to improve accessibility and usability within the Avalanche DeFi ecosystem.

Pros

• DeFi Lending & Borrowing: Benqi allows users to lend and borrow crypto assets easily on the Avalanche network, helping users earn interest or access liquidity.
• Liquid Staking: Users can stake AVAX and receive sAVAX tokens that keep earning value, allowing them to use staked assets in other DeFi apps.
• Low Fees & Fast Transactions: Built on Avalanche, Benqi benefits from low network fees and quick transaction speeds.
• Governance & Utility Token: The QI token lets holders participate in governance and earn rewards.
• Developer Friendly: Benqi supports building new financial products on its protocol.
• Growing Ecosystem: It is one of the largest DeFi protocols on Avalanche with increasing adoption.

Cons

• Price Volatility: The QI token price can fluctuate significantly, which may affect user returns.
• Competition: Other DeFi platforms like Aave and Compound offer similar services and may attract users with better incentives.
• Market Activity: Trading volume and market interest can vary, sometimes showing decreases in activity.
• Limited Asset Range: While expanding, Benqi currently focuses mainly on Avalanche ecosystem assets, which may limit options compared to multi-chain platforms.

For more details, visit Benqi's official website.

Founders of Benqi

Benqi was founded by three main individuals:

• Dan Mgbor
• JD Gagnon
• Hannu Kuusi
• Alexander Szul

These founders are also connected through their work at Rome Blockchain Labs, Inc., an incubator and software development firm focused on decentralized finance (DeFi).

Investors in Benqi

Benqi has raised funding from several well-known investors, including:

• Ascensive Assets (led a $6 million strategic round)
• Dragonfly Capital
• Arrington XRP Capital
• Mechanism Capital
• Spartan Group
• TRGC
• Woodstock Fund
• Ava Labs
• Morningstar Ventures
• GBV Capital
• Skynet Trading
• Rarestone Capital
• Genblock Capital
• Moon Inc.

These investors support Benqi's growth in decentralized finance on the Avalanche blockchain.

Halal Status of Benqi

• Yes, Benqi is generally considered halal by some Islamic finance perspectives because it operates as a decentralized finance (DeFi) protocol that allows lending and borrowing without involving interest (riba), which is prohibited in Islamic law.
• It is primarily used for governance and utility within the Avalanche blockchain ecosystem, and its functions align with some principles of Islamic finance.
• However, the halal status can depend on individual interpretation and the specific use case of the token.

For more detailed and personalized guidance, consulting a qualified Islamic finance scholar is recommended.