The Avalanche Foundation and BENQI, an algorithmic liquidity market protocol, are partnering on a combined liquidity mining initiative as a followup milestone after the launch of the BENQI protocol earlier on August 19th.
This planned strategy is fully oriented towards boosting the growth of Avalanche’s DeFi platform.
Consequently, BENQI customers will be granted $3 million in AVAX as liquidity incentives. Users who lend and borrow AVAX, ETH, LINK, wBTC, USDT, and DAI on the protocol with BENQI will receive AVAX as a reward.
Users can Earn BENQI ($QI) and Avalanche ($AVAX) Via the DeFi Incentive Program
Avalanche is an open-source platform especially designed to support decentralized applications and enterprise blockchain solutions in a highly scalable and interoperable environment.
John Wu, President of Ava Labs also agreed that, “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.”
Avalanche is the world’s first decentralized smart contract platform designed for the size of global banking at almost instant transaction finality. With these tools, people everywhere have access to new liquidity tools that can create great returns.
Also thanks to Solidity working right out-of-the-box, Ethereum developers can easily build on Avalanche. This level of ease will allow developers to move quickly, and create useful tools for the DeFi economy.
AVAX, Avalanche’s native token, is a hard-capped crypto asset utilized to pay for the platform’s fees, for staking as to add further security to the platform, and also used to serve as the basic unit of account among Avalanche’s several subnets.
A corporate consortium formed by Avalanche Foundation, Mechanism Capital, Dragonfly Capital, Arrington XRP Capital and the Spartan Group participated in a $6 million fundraising round for BENQI.
BENQI and Avalanche Make High-Performance Borrowing & Lending Happen
So far, Avalanche’s DeFi ecosystem accumulated over $233 million in total locked value. This represent a deep vote of confidence in the ecosystem, and will likely help the platform to attract even more capital going forward.
Many decentralized exchanges, especially those automated market makers (AMM), deployed on Avalanche mainnet in the early stages of the ecosystem’s development, taking advantage of the platform’s high-speed and low fees.
These exchanges became key to Avalanche’s ecosystem growth. For instance Pangolin, Avalanche’s leading AMM utilizing the platform, is responsible for operations of $1.3 billion in total trading volume since February to date.
More Coming from Avalanche
The next phase will concentrate efforts on incorporating a number of high-performance traditional finance or classic money markets.
The recently developed Avalanche Bridge, currently on Beta version, is adding security and speed to the low-cost transfers between Avalanche and Ethereum platforms.
Avalanche Bridge uses with Intel’s SGX encryption codes to reinforce safety and speed while keeping gas fees low. While no system is totally secure, Avalanche has used great tools to keep its users safe.
JD Gagnon, Co-Founder of BENQI, said, “Decentralized finance (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.”
Following the launch of BENQI on the Avalanche C-Chain, a bridging opportunity between decentralized finance (DeFi) and institutional networks was possible over Avalanche’s highly scalable network.
Rewarded with BENQI tokens, Avalanche users earn interest based on their assets, obtain credit through over-collateralized loans and grant themselves QI governance tokens.
In return Avalanche users provide liquidity on the platform mainly through Pangolin AMM exchange.
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