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Investing In BENQI (QI) – Everything You Need to Know

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BENQI (QI) operates as a liquidity market and advanced DeFi (decentralized finance) staking protocol. The network is one of the primary lending options within the Avalanche ecosystem. As such, it’s been a popular network since its launch. Notably, the platform secured a total of $9.93 million via four rounds of token sales. This funding has gone to improving the network’s performance and expanding its features.

What Problems Does BENQI (QI) Solve?

BENQI (QI) offers solutions to a variety of problems that many people face today. The network helps to provide a more streamlined and accessible lending system to the public. The protocol enables users to borrow without the need to appease gatekeepers. Users simply need to meet the collateralization requirements for the loan and they can gain access to the funding they need to expand their business or trading strategy.

BENQI (Qi) - Twitter

BENQI (Qi) – Twitter

Faster Loans

DeFi lending protocols like BENQI improve the loan process through efficiency. These networks provide users with faster access to funding. Getting a loan from a centralized service like your bank can be a time-consuming process that requires a plethora of steps in addition to meeting the collateralization requirements. Even after meeting these demands, it can take weeks for a loan to issue from a bank.

Lack of Transparency

The centralized banks have completely cut the average person out of the lending process. There is little way for you to easily obtain exact details on your bank’s lending profits, history, etc. BENQI provides another level of transparency through the use of blockchain technology. The use of a free blockchain explorer can provide all the information needed in near real-time to anyone on the network.

High Fees

Lending services have continually raised their rates over the last decade. Today’s loans come with a plethora of fees that are confusing and expensive. These fees have deterred many businesses and individuals from seeking funding. BENQI’s decentralized structure eliminates much of these fees from the equation because it removes the middlemen. Users conduct loans directly with the profits going back to the community.

Benefits of BENQI (QI)

BENQI introduces a variety of benefits to users. The network operates as a fully decentralized network which improves the overall security and transparency of the protocol. Additionally, the network was designed to improve user onboarding via a simplistic interface that provides access to yield-generating products.

Non-Custodial

Another major advantage of BENQI is its non-custodial nature. Non-custodial DeFi systems are the safest way to prevent hackers from accessing your funds. These networks don’t require you to send your crypto to a large centralized wallet where it becomes a target. Instead, your funds stay safe in your wallet until the moment your transactions execute.

BENQI (Qi) - Homepage

BENQI (Qi) – Homepage

Passive Income

The main draw to BENQI is its passive income streams. Passive income is a critical component in obtaining financial freedom. BENQI offers users multiple ways to earn interest without risking the loss of their original assets. Additionally, the network pays out rewards in QI, the native utility token that can be staked or lent to secure more profits.

Expandable

Another advantage of BENQI is its expandability. The network’s developers encourage the community to build strategies on the back of its lending functions. The protocol features an open-source code to help make development easier. This approach improves the usability of the protocol. As the more Dapps that leverage the system, the larger the network becomes, the more liquidity it provides, and the more returns users earn.

How Does BENQI (Qi) Work

BENQI leverages an advanced algorithmic liquidity market protocol to provide fast lending services to users. The network leverages the fourth-generation Avalanche blockchain. Avalanche has high transactions throughput due to its multi-blockchain structure. Avalanche separates the validation process from smart contract actions to provide top-notch scalability.

P2P Lending Market

BENQI’s main product is its P2P lending protocols. These systems make it easy to borrow and lend tokens in a secure manner. The system integrates a variety of steps to ensure that lenders don’t take losses. For one, the borrower must over-collateralize their loan using supported assets.

Safety Module

There is also a special staking pool called the Safety Module that is meant to offset any lending shortfalls. Users can stake Qi in a Safety Module and get a portion of protocol reserves as rewards. These added safety precautions protect users and improves confidence in the network.

Staking

There are a variety of ways to stake Qi tokens. The most popular option is to stake in liquidity pools on DEXs like Pangolin or in the Qi token pool directly using the BENQI protocol. Staking is one of the most popular features available today. Users provide liquidity to a smart contract for a preset time to secure returns. Staking is ideal for new traders because there are no surprises. You already know what your rewards will be and when they will be sent.

Qi - CoinGecko

Qi – CoinGecko

Token

Qi is the utility token for the BENQI ecosystem. Qi is required to participate in the lending and staking features of the network. You can use this token to send value as well. It is also a vital component of the community governance system.

Governance

BENQI relies on a DAO (Decentralized Autonomous Organization) to keep its community cohesive. These systems replace managers with voting mechanisms that the community uses to decide on vital changes and upgrades to the platform. These upgrades can include fee changes, new features, token burns, and more.

How to Buy Benqi (QI)

Currently, Benqi (QI) is available for purchase on the following exchanges.

Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying Benqi (QI). Use Discount Code: EE59L0QP for 10% cashback off all trading fees.

KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens.  It is often the first to offer buying opportunities for new tokens.  This exchange currently accepts International & United States residents.

WazirX – This exchange is part of the Binance Group, which ensures a high standard of quality.  It is the best exchange for residents of India.

BENQI – DeFi Lending is on the Rise

BENQI is another example of how DeFi lending protocols are becoming more popular around the globe. These systems provide more convenience and profits to the market. This network provides the most popular DeFi features with scalability to empower users to secure returns. As such, BENQI is a protocol to watch in 2022.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

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