BENQI, a decentralized non-custodial liquidity market protocol, and Avalanche plan to allocate $3 million AVAX, Avalanche’s native token, for use as liquidity incentives for BENQI customers.
As per the announcement, the AVAX tokens can be used to reward customers who’re lending and borrowing ETH, LINK, AVAX, wBTC, USDT, and DAI on the protocol with BENQI. Notably, the initiative will present customers with the chance to earn BENQI ($QI)
While commenting on the partnership, JD Gagnon, a co-founder of BENQI, defined:
“DeFi is primed to take off on Avalanche with the arrival of another cornerstone DeFi functionality. BENQI is joining a rapidly growing ecosystem of DeFi users, assets, and applications on Avalanche, and we expect users and developers to leverage BENQI to expand the utility of their assets.”
The partnership seeks to allow the following part of development inside Avalanche’s DeFi ecosystem. Notably, the Avalanche DeFi ecosystem has gathered over $233 million in Total worth locked. In addition, the primary part of the Avalanche ecosystem improvement noticed many decentralized exchanges, particularly automated market makers (AMM), deployed on its mainnet.
In the approaching part, the partnership will reportedly deal with increasing quite a lot of high-performance monetary primitives, like cash markets. Recently, Avalanche launched an upgraded bridge that’s allegedly 5 instances cheaper, safe, and quicker than the preliminary bridge. The improve has been seen by many locally as a step ahead in elevated interoperability amongst decentralized purposes and the expansion of the DeFi ecosystem.
John Wu, the President of Ava Labs, explains:
“BENQI is launching at a key moment for Avalanche users and the broader DeFi ecosystem. Its technology adds a missing piece to the puzzle and will make Avalanche even more attractive to users being priced out of other networks. In addition, this is an exciting step in a broader community initiative to bring more assets and liquidity onto the platform.”
The incentives come weeks after BENQI not too long ago introduced it was deploying the Gauntlet platform on Avalanche for danger administration. The Gauntlet platform is designed to observe market dangers whereas additionally governing completely different protocols beneath completely different market situations.
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