The amount of value locked on BENQI, a non-custodial liquidity decentralized finance platform, has now reached $1 billion since its launch on August 19. The massive traction comes after BENQI collaborated with Avalanche Foundation to launch a liquidity mining program to celebrate BENQI’s launch, according to a press release from the company.
The launch of a cross-platform asset transfer feature called Avalanche Bridge is also catalyzing this traction according to BENQI co-founder JD Gagnon.
“This has been an incredible week for the team and we are overwhelmed by the amount of support our partners and the Avalanche community has shown us leading up to this. The Avalanche Rush initiative coupled with the new Avalanche Bridge has proved to be a major catalyst for the rush of liquidity to not only BENQI but the rest of the Avalanche DeFi ecosystem. A big thank you to everyone involved! We’re currently optimizing the protocol, and have plans to collaborate with projects going cross-chain to Avalanche as part of the Avalanche Rush initiative.” – Co-Founder, JD Gagnon
BENQI is built on the Avalanche smart contract blockchain platform, which supports the development of dApps of all kinds. It supports interoperability and the massive scalability of dApps.
President of Ava Labs John Wu said BENQI’s technology would make Avalanche more attractive and less costly for its users. He said BENQI’s launch was a crucial step and part of the larger initiative to bring more assets to the Avalanche platform. Ava Labs is a team that supports development on Avalanche.
BENQI platform enables users to lend, borrow, and earn interest on their cryptocurrencies. Through the collaboration, Avalanche and BENQI will offer a total of $3 million rewards in AVAX tokens to BENQI users who lend and borrow cryptocurrencies AVAX, ETH, LINK, wBTC, USDT, and DAI. AVAX, which is Avalanche’s native token, is spent to pay fees, stake assets on the network, and a unit of account on subnets created on the platform.
Through the Avalanche Bridge, the Avalanche platform will also soon be capable of supporting asset transfer between it and Ethereum. The bridge will allow users to transfer digital assets quickly, securely, and at a lower cost between the networks. BENQI and many other dApps expected to launch on the Avalanche platform will take advantage of this feature.