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BENQI is a decentralized finance (DeFi) protocol built on the Avalanche network. It consists of two main parts: BENQI Liquid Staking (BLS) and BENQI Liquidity Market (BLM).
**BLS** offers a solution for liquid staking on Avalanche, enabling users to earn returns on their staked assets.
**BLM** creates an environment for lending and borrowing crypto assets via smart contracts.
The way BENQI works involves BLS, which allows users to stake their assets with Avalanche validators and use those staked assets without any lock-up period. On the other hand, BLM functions as a lending and borrowing platform on the Avalanche network, where users can lend, borrow, and earn interest on their crypto holdings. This entire process is automated through smart contracts that calculate yields algorithmically based on supply and demand, and support over-collateralized borrowing.
QI is the native token of BENQI, serving two main purposes: governance and utility.
**In governance**, the QI token is used within the BENQI DAO to manage and vote on proposals, influencing the protocol's direction, including economic policies, security upgrades, and further developments.
**In utility**, the QI token is used for staking, earning delegation rewards, and enhancing functionalities within the BENQI ecosystem.
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further update will post soon
