What is BenQi (QI)? Everything you need to know about QI token

BenQi is the platform with the largest total value locked volume ($1.7b) in the Avalanche ecosystem. Although newly launched, the project has achieved certain successes in a short time period.

So, what makes this project so unique? What is the mechanism behind it, and what information should we pay attention to? Let's find out in the following article.

What is BenQi?

BenQi is a money market protocol that allows borrowers and lenders to use the project. Users are able to lend their digital assets, while earning passive income in return for providing stability at risk-free rates of interest through Benqi's proprietary smart contract system on the Avalanche network.

BENQI aims to create a fully decentralized, liquid market protocol that aims to fix all of the problems associated with current financial markets by providing access without permission or limitations. With this innovation in place for lenders and borrowers alike on their highly scalable network, it will make borrowing more approachable than other platforms. 

With BenQi, users are able to do these activities:

• Instantly supply to and withdraw liquidity from a shared liquidity market
• Instantly borrow from a liquidity market using their supplied assets as collateral
• Have a live and transparent view of interest rates around the clock based on the asset's market supply and demand

How does BenQi work?

To use the protocol, a user deposits their preferred asset that is supported on the platform. Users will be able to earn interest based on market demand for borrowing and even get rewarded with additional funds. 

The deposited assets can be used as collateral for users to borrow other types of assets. Any interest earned by users will be offset against the accumulated interest from borrowing.

The token pools will be decided by the core team and the protocol’s governance voting will be used when the Decentralized Autonomous Organization (DAO) starts to work. At the moment, there are limited token pools as in the photo below. However, additional pools will be added as the platform grows.

Depositors and lenders will be given (QiTokens) which they can use to withdraw funds from the pool on demand. The Qitoken is tradable like any other crypto asset in Avalanche's exchange market, so this system provides an additional incentive not just for keeping your savings there but also trading them with others who want access to reliable interest rates.

What is QI token?

The Qi token is the native token of the BenQi ecosystem as well as a native asset on Avalanche. Qi has many use cases including:

• Governance: QI is a token that allows the holders to participate in decisions and steer the protocol. The founders will govern initially, but eventually, it will transition into the decentralized autonomous organization (DAO). As part of DAOs they can submit proposals that are voted on by QI tokens holders.
• Reward: Qi is used to incentivize liquidity providers and liquidity miners on the platform.
• Lending & Borrowing: Lenders can also use Qi tokens as an asset to deposit to earn rewards.  Borrowers can use Qi tokens as collateral assets to borrow other cryptocurrencies.                                               

Detailed information about QI Token

QI Token Metrics

• Token Name: BenQi Token.
• Ticker: QI.
• Blockchain: Avalanche.
• Token Standard: ARC-20.
• Contract: 0x8729438EB15e2C8B576fCc6AeCdA6A148776C0F5.
• Token type: Utility.
• Total Supply: 7,200,000,000 QI.
• Circulating Supply: 325,692,000 QI.

QI Token Allocation

The total supply of QI will be 7,200,000,000 tokens. The token distribution is designed as follows:

QI Token Sale

Token Sale

• Total tokens allocated: 504,000,000 QI.
• Registration date and time: 15th April 2021, 9 AM Pacific Time.
• Public sale date and time: 28th April 2021, 9 AM Pacific Time.

Public A

• Tokens allocated: 439,200,000 QI.
• % of total supply: 6.10%.
• Price per token: $0.0075 per QI.
• Unlock schedule: 20% on public listing and monthly release over 12 months.
• Minimum contribution: $500.
• Maximum contribution: $10,000.

Public B

• Tokens allocated: 64,800,000 QI.
• % of total supply: 0.90%.
• Price per token: $0.0090 per QI.
• Unlock schedule: 100% on public listing.
• Minimum contribution: $100.
• Maximum contribution: $2,500.

QI Release Schedule

The majority of QI tokens will be distributed through Liquidity Mining. And all QI tokens will be distributed in 260 weeks (Equivalent to about 5 years).

Community Distribution:

• Liquidity Mining: Distributed in 260 weeks. You can get QI Tokens through lending, borrowing as well as providing liquidity for the project.
• Liquidity Provider Incentives: The team has not officially announced the delivery time through this form. To receive QI tokens, you can also provide liquidity for the QI-AVAX pair on the Pangolin exchange.
• Team: Fully Unlocked for 4 years, unlocked quarterly. And Team Tokens will be locked within 12 months from Public Listing.
• Treasury: Fully Unlocked within 4 years, unlocked quarterly. And the amount of Tokens in the Treasury Fund will be locked within 9 months from the date of Public Listing.
• Exchange Liquidity: Unlock 50% of TGE. The remaining amount will be Unlocked after 1 month from Public Listing.

How to buy QI Token

You can use Coin98 Exchange to swap other tokens for QI following these simple steps with: https://exchange.coin98.com/

Step 1: Connect Coin98 Extension Wallet.

Step 2: Select Avalanche

Step 3: Choose coins/tokens for trading:

• Search QI.
• If the result does not come up, you can paste the contract of QI into the search box: 0x8729438EB15e2C8B576fCc6AeCdA6A148776C0F5.

Step 4: Adjust the amount you want to swap.

Step 5: Adjust the gas fee, then click Approve.

How to mine QI Token

Users can provide liquidity on Pangolin to receive QI tokens or deposit QI tokens as an asset and earn interests paid in QI from lending.

How to store QI Token

You can store QI token on Coin98 Wallet with these steps:

Step 1: Open Coin98 Wallet & click Receive on the home screen.

Step 2: Search QI Token.

Step 3: Click on the correct result, copy the wallet address and send QI to this address.

Roadmaps and Updates

Updating…

Team, Investors, and Partners

Team

BenQi is founded by Dan Mgbor. He has over 14 years of experience in delivering projects globally especially in blockchain and insurance industries.

Investors

BENQI Finance has raised a total of $6M in funding from the Private Equity Round in April 2021.

They also received investment from many Venture Capital, including some famous names such as Ava Labs, Spartan Group and Dragonfly Capital.

Partners

Updating…

Is QI a good investment?

This article has provided some of the main ideas related to the BNB token and its implications. It is important to note that there are a few key points that investors should take into account before making investment decisions. Please note, this is not financial advise and you should always do your own research:

BenQi is one of the key projects in the Avalanche ecosystem. The project just is only a few months old but has reached the top total value locked across all the platforms in Avalanche. The platform still has room to expand as the user’s adoption of Avalanche continues to grow.

Avalanche aims to empower its DeFi ecosystem with the huge $180M incentive program names “AvalancheRush”. BenQi is one of a few projects which is funded. Also, the $6M funding from investors also includes Avax Labs showing there are a lot of supports toward this project.

The platform is user-friendly and easy to use. However, the token pools supported are still limited. With the DAO coming into governance soon, we can expect more token pools and functions added to the project.

With a supply volume of $2.8 billion and a borrowed amount of only $1.1 billion, BenQ's capture value index is not as expected. I'm hoping that in the future, BenQi will have solutions to this issue, such as increasing the number of Supply Assets available to users.

Conclusion

I hope you have gained all of the important information about QI including its features and highlights throughout this topic.

If you have any questions or want to know more about QI, please feel free to leave a comment below and join Coin98 Community for further discussions about Crypto.