BENQI Review: Algorithmic Liquidity Market Protocol on Avalanche
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Borrowing and lending cryptocurrency are vital services for both new entrants and experienced traders aiming to boost their income as the cryptocurrency business has been carving a new path towards the global economy of the future.
While Decentralized Finance ( DeFi) attempts to resolve several issues on the Ethereum blockchain, BENQI, located in Avalanche, joins the market with the hope of resolving them with their algorithmic liquidity market protocol.
What Is BENQI?
BENQI is a decentralized non-custodial liquidity market protocol built on the Avalanche platform.
Users can simply lend, borrow, and earn interest with their digital assets via the protocol. As a result, users can make passive money by lending, and borrowers have the option of borrowing with excessive collateral.
What Is Avalanche?
Avalanche is an open-source platform for developing and launching decentralized applications (dapps) and other blockchains. The ecosystem is highly scalable to manage global finance, with a transaction throughput of 4500 tps.
AVAX, the native token, is used to pay transaction fees and staking to protect the network. In addition, it functions as a unit of account for the platform’s many assets.
Who Should Use BENQI?
BENQI was founded by a group of people who were deeply involved in the Ethereum and decentralized finance ecosystems, with the goal of offering a Liquidity Market Protocol on a decentralized platform that is extremely scalable.
Since the DeFi boom in 2020, Ethereum has been experiencing congestion, resulting in high network fees, which has been a major barrier to consumers.
The BENQI team has realized that Avalanche could be the next smart contract and asset successor, easing Ethereum ‘s load and allowing for frictionless transactions for users.
Despite the fact that the Avalanche ecosystem is still in its infancy, with only a few DeFi protocols, the team discovered it was the first to introduce a loan and borrowing protocol to the network.
The BENQI protocol democratizes access to decentralized…
