We are excited to announce the release of BENQI’s Liquid Staking (BLS) protocol on Avalanche.
Following the completion of our audits with Halborn, BENQI’s Liquid Staking protocol will be kicking off with a guarded launch.
What is BENQI Liquid Staking (BLS)?
BENQI Liquid Staking is a protocol enabling users to stake AVAX to receive BENQI Liquid Staked AVAX (sAVAX), an interest bearing version of AVAX.
By tokenizing staked AVAX (on the P-Chain) into sAVAX (currently on the C-Chain), users will now be able to participate in Decentralized Finance while earning rewards from securing the Avalanche network itself.
With an interest bearing version of AVAX now available on the Avalanche C-Chain, a wealth of strategies and products will be able to be built on top of sAVAX. Details regarding these products and partnerships are on-going and will be announced in the future.
Using BENQI Liquid Staking (BLS)
BLS currently has no lock-up periods and fees imposed on users. Simply head over to the app and stake your AVAX to receive sAVAX.
For unstaking sAVAX to AVAX on the app, there is a 15 day cooldown period. This is covered in detail within the BENQI documentation.
Alternatively, instant conversions between sAVAX and AVAX can be done through partner Automated Market Makers (AMMs) offering sAVAX <> AVAX swaps.
Additional information on BENQI Liquid Staking is documented in the BENQI docs which covers the following:
- Overview of BENQI Liquid Staking (BLS)
- Benefits of BENQI Liquid Staking (BLS)
- The sAVAX token
- BENQI Liquid Staking (BLS) FAQs
- QI token utility for BLS
The QI token and the Subnet Economy
With Avalanche Subnets poised to take off, the QI token will be playing an integral role in providing subnets enhanced liquidity through Liquid Staking, validator bootstrapping and boosted DeFi rewards to liquidity providers.
This will be done through veQI, which represents the QI token locked up for a predetermined period. By accruing voting power via veQI, users, builders and DAOs will soon be able to direct staked AVAX to bootstrap and support their favorite subnets (e.g. DFK, Crabada, Dexalot).
This means veQI can direct staked AVAX to validate these subnets to receive subnet rewards, get boosted QI emissions, and much more.
We would like to extend our gratitude to our community and projects for their support and encouragement throughout the last few months.
We are excited for this new phase of Avalanche DeFi and look forward to partnering and integrating sAVAX with new and existing protocols as we buidl into 2022 and beyond!
Built on Avalanche’s highly scalable network, BENQI’s vision of bridging decentralized finance (DeFi) and institutional networks starts by launching BENQI on the Avalanche C-Chain. BENQI’s suite of yield-generating DeFi products consists of the BENQI Liquidity Markets and BENQI Liquid Staking.
BENQI’s Liquidity Markets allows users to earn interest on their supplied assets, and borrow any available asset from the platform in an overcollateralized manner.
BENQI’s Liquid Staking protocol is a liquid staking solution that tokenizes staked AVAX to grant users the ability to utilize the yield-bearing asset within Decentralized Finance applications.