What is BENQI: A Comprehensive Guide to the Leading DeFi Lending Protocol on Avalanche

BENQI's Positioning and Significance

In 2021, BENQI was launched as a decentralized non-custodial liquidity market protocol on Avalanche, aiming to solve the challenges of capital efficiency and yield generation in the DeFi space.

As a key player in the lending and borrowing sector of DeFi, BENQI plays a crucial role in expanding the possibilities for users to leverage their digital assets and earn passive income.

As of 2025, BENQI has become an integral part of the Avalanche ecosystem, boasting 38,034 holders and an active development community. This article will delve into its technical architecture, market performance, and future potential.

Origin and Development History

Birth Background

BENQI was created in 2021 to address the need for efficient capital utilization and yield generation in the rapidly growing DeFi sector. It emerged during the DeFi boom, aiming to provide users with a platform to lend, borrow, and earn interest on their digital assets.

BENQI's launch brought new possibilities for both passive income seekers and borrowers in the Avalanche ecosystem.

Important Milestones

• 2021: Mainnet launch, introducing lending and borrowing functionality on Avalanche.
• 2021: Token sale rounds, raising $99,300 and distributing QI tokens to early supporters.
• 2021: All-time high price of $0.39417 reached on August 24.

With support from the community and ongoing development efforts, BENQI continues to enhance its features, security, and real-world applications within the DeFi space.

How Does BENQI Work?

Decentralized Control

BENQI operates on the decentralized Avalanche network, free from control by traditional financial institutions or governments. This decentralized nature ensures transparency and attack resistance, empowering users with greater autonomy and enhancing network resilience.

Blockchain Core

BENQI utilizes the Avalanche blockchain, a public and immutable digital ledger that records all transactions. Transactions are grouped into blocks and linked through cryptographic hashes, forming a secure chain. Anyone can view the records, establishing trust without intermediaries.

Ensuring Fairness

BENQI leverages Avalanche's consensus mechanism to validate transactions and prevent fraudulent activities like double-spending. Participants maintain network security through activities such as staking AVAX tokens, and in return, they receive rewards. This system ensures the protocol's integrity and incentivizes network participation.

Secure Transactions

BENQI employs public-private key cryptography to secure transactions:

• Private keys (similar to secret passwords) are used to sign transactions
• Public keys (similar to account numbers) are used to verify ownership

This mechanism ensures the security of funds and maintains pseudonymous transactions. Additionally, BENQI implements smart contract audits and security measures to protect user assets and the protocol's integrity.

BENQI's Market Performance

Circulation Overview

As of September 29, 2025, BENQI's circulating supply is 7,200,000,000 tokens, which is equal to its total supply of 7,200,000,000.

Price Fluctuations

BENQI reached its all-time high of $0.39417 on August 24, 2021. Its lowest price was $0.00473811, occurring on October 13, 2023. These fluctuations reflect market sentiment, adoption trends, and external factors.

Click to view the current market price of BENQI

On-chain Metrics

• Number of holders: 38,034 (indicating user participation)

BENQI Ecosystem Applications and Partnerships

Core Use Cases

BENQI's ecosystem supports multiple applications:

• DeFi: Lending market, allowing users to lend and borrow digital assets and earn interest.
• Liquid Staking: Users can stake their AVAX tokens on the EVM-compatible Avalanche C-chain.

Strategic Collaborations

BENQI has established partnerships with Avalanche to enhance its technical capabilities and market influence. These partnerships provide a solid foundation for BENQI's ecosystem expansion.

Controversies and Challenges

BENQI faces the following challenges:

• Market Volatility: Price fluctuations and market uncertainties.
• Competitive Pressure: Emergence of other DeFi protocols on Avalanche and other blockchains.

These issues have sparked discussions within the community and market, driving continuous innovation for BENQI.

BENQI Community and Social Media Atmosphere

Fan Enthusiasm

BENQI's community is vibrant, with 38,034 holders as of September 29, 2025. On X platform, related posts and hashtags (such as #BENQI) often trend.

Social Media Sentiment

Sentiment on X shows polarization:

• Supporters praise BENQI's yield-generating products and DeFi expansion.
• Critics focus on price volatility and potential risks in DeFi lending.

Recent trends show a generally positive outlook during market uptrends.

Hot Topics

X users actively discuss BENQI's governance, liquidity mining, and staking features, showcasing both its transformative potential and the challenges in mainstream adoption.

More Information Sources for BENQI

• Official Website: Visit BENQI's official website for features, use cases, and latest updates.
• X Updates: On X platform, BENQI uses @BenqiFinance, actively posting about technical upgrades, community events, and partnership news.

BENQI's Future Roadmap

• Ecosystem Goal: Support and expand DeFi applications on Avalanche
• Long-term Vision: Become a leading decentralized, non-custodial liquidity market protocol on Avalanche

How to Participate in BENQI?

1. Purchase Channels: Buy BENQI on Gate.com
2. Storage Solutions: Use compatible Avalanche wallets for secure storage
3. Participate in Governance: Through QI token holding and staking
4. Build the Ecosystem: Visit BENQI's documentation to develop or contribute to the protocol

Summary

BENQI is redefining DeFi on Avalanche, offering lending, borrowing, and liquid staking functionalities. Its active community, rich resources, and strong market performance make it stand out in the cryptocurrency field. Despite facing challenges like market volatility and competition, BENQI's innovative spirit and clear roadmap position it as an important player in the future of decentralized finance. Whether you're a newcomer or a seasoned player, BENQI is worth watching and participating in.

FAQ

How does BenQi work?

BenQi operates as a DeFi protocol on Avalanche, offering liquid staking, lending, and validator infrastructure. Users can stake QI tokens to earn BENQI Miles, which are used for voting on protocol upgrades and influencing validator delegations.

What is Benqi crypto price prediction?

As of 2025, Benqi crypto price is predicted to reach up to $0.01455. This forecast is based on current market trends and analysis.

Is BenQi a dex?

No, BenQi is not a DEX. It's a DeFi protocol on Avalanche offering liquid staking, lending, and governance through its QI token.

How much money is 1 qi?

As of 2025-09-29, 1 qi is worth approximately $0.001541. You can get about 649 qi for $1 USD.