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The ability to borrow from digital currency accounts is one of the essential services in cryptocurrencies, both for beginners and experienced traders looking to expand their potential. At the same time, lending to digital currency users allows them to make money with their thick deposits passively. BENQI digital currency enters the cryptocurrency market by relying on the platform based on the Avalanche blockchain. Its purpose is to troubleshoot the current Defi system on the Ethereum blockchain (such as high fees and network congestion), all of which are derived from its algorithmic liquidity protocol. In this article, we want to introduce the BENQI digital currency project and QI token features.

The decentralized financial system, or Defi, has grown at an all-time high over the past two years. Given that most of the activities of Defi projects take place in Ethereum, this will gradually lead to an increase in congestion. And consequently high network fees. This is one of the severe obstacles for old and new users with limited capital and makes users reluctant to use Difai. In such a situation, a BENQI digital currency comes into play.

What is BENQI digital currency?

The BENQI Digital Currency Protocol is a decentralized, non-depreciable liquidity protocol based on the Avalanche blockchain. This Protocol enables users to use their digital assets to lend easily, borrow and earn interest. Depositors who provide liquidity for this Protocol can earn passively. On the other hand, the Protocol allows people who use these loans to borrow more on collateral (over-collateralized).

BENQI Digital Currency Platform, with its decentralized liquidity protocol and high scalability, aims to provide democratized access to decentralized financial products with the support of blockchain and digital currency lending. BENQI emphasizes accessibility, ease of use, and reduction of fees, and it will be possible for users to receive and provide loans without the need for a license. Thus, users of this Protocol can:

1. Instantly use the assets to provide liquidity as collateral to borrow from the liquidity market.

3. Gain a clear view of interest rates at the moment based on supply and demand in the asset market.

Use of Protocol

To use this Protocol, users deposit their preferred assets, provided that the Protocol is approved. Therefore, they can profit according to the market demand for borrowing from that particular asset. In addition, the assets deposited can be used as collateral to borrow other assets. The interest earned on depositing funds offsets the cumulative interest rate in the borrowing process.

As the platform grows, BENQI will add more tokens to the pool. Decisions on this were initially made by the core team of the Protocol, after the change of governance to a decentralized organization (DAO), based on the votes and suggestions of the community and using the QI governance token.

Fundraising

Funds in the BENQI digital currency protocol are managed through smart contracts. Depositors/lenders will receive QiTokens interest-bearing tokens. These tokens can be used to withdraw funds from the liquidity pool when necessary. QiToken can be transferred to other cryptocurrencies in the Avalanche blockchain and traded with each other.

dangers

None of the blockchain space protocols can be considered entirely safe. The risks of a BENQI digital currency protocol are deemed to be potentially due to the dangers of intelligent contracts and liquidity risks. The behind-the-scenes team of this digital currency has taken the necessary measures to minimize these risks as much as possible. These measures include auditing and the generality and openness of the Protocol.

BENQI digital currency token

The QI token is an asset in the Avalanche blockchain and oversees the entire banking protocol ecosystem, such as treasury and future protocol transcripts.

This token is used using BENQI Recovery Proposals (BIPs) to vote and decide on the consequences of proposals. The Protocol is initially governed by its founding team and will eventually be handed over to the DAO. Holders of QI tokens as part of the DAO can make suggestions and vote on issues that will determine the future direction of the Protocol.

The total supply of QI tokens is estimated at 7 billion and 200 million tickets. It is expected that in the first quarter of 2024, this digital currency will reach its maximum supply. The token distribution is designed so that participants who are actively involved with the platform can receive QI tokens. Most of these tokens will be distributed through a cash extraction program.

BENQI digital currency distribution

The token distribution aims to ensure healthy participation in the Protocol. A proper protocol is one in which the high rate of borrowing pools is always in balance with the growing lending collection. This creates protocol fees for the Treasury Fund, allowing QI token holders to decide on the best practices and optimal solutions for the Protocol by consensus.

To this end, all tokens are fully distributed within 260 weeks so that all market subscribers can play a role in protocol governance. The distribution percentage of these tokens is:

• Liquidity extraction program: 45%
• Token sales: 25%
• Treasury: About 15%
• Team: 10%
• Exchange liquidity: up to 5%

BENQI digital currency team

A team of 7 members has launched the BENQI digital currency project.

JD Gagnon is the founder of the growth center and software development company for Rome Blockchain Labs and the CEO of Etherlabs Labs.

Hannu Kuusi, with more than 20 years of experience in the field of information and communication technology, along with Gagnon, has been the founder of Blockchain Rome Laboratories and has been active in the cryptocurrency market since the first days of the introduction of bitcoin digital currency.

Alexander Szul, another co-founder of the Roman Blockchain Laboratories, was involved in building Velox and managing the development of the Banking Liquidity Platform.

Dan Gabor, with years of experience in managing blockchain-related operations, with a bachelor’s degree in computer and electronics engineering and a master’s degree in business analysis and management science, is another project’s co-founder.

Jason Tuang has been one of the strongest defenders of the cryptocurrency market since 2016 and has worked for one of the four most prominent companies and accounting giants in the world. He is a defense expert and has extended his financial knowledge to the blockchain.

Hansen Niu is another crypto advocate specializing in corporate strategy and involved in the BENQI digital currency project. His education includes a bachelor’s degree in chemical and process engineering and a master’s degree in business management.

Dexter Lee was involved in advancing the first aspects of the Diffie network. He has a bachelor’s degree in civil engineering.

A total of 10% of QI tokens (equivalent to 720 million) are distributed among the BENQI digital currency team. BENQI will unlock these tokens entirely within four years. The first unlock will be 12 months after the ticket is publicly listed.

BENQI Digital Currency Treasury

In total, about 14 percent or 1,008 million QI tokens are allocated to the BENQI digital currency treasury. These tokens are used to motivate participation and ensure the health of the Protocol. The treasury will be handed over within four years and unlocked for the first time after nine months from the public listing of the token.

Exchange liquidity

A total of 1% or 72 million QI tokens are allocated to provide liquidity to the exchange. These exchanges include both decentralized exchanges such as pangolin and centralized exchanges. 50% is released in the token generation event (TGE), and the rest is unlocked one month after public listing.

Where and how to buy BENQI digital currency?

To buy digital BENQI currency, you must first purchase one of the major digital currencies such as Bitcoin (BTC), Ethereum(ETH), Tether (USDT), Binance (BNB). You can use one of the Iranian exchange offices to buy Tether by paying Rials to buy Tether. Then transfer Tether to the currency exchange wallet of your choice and invest in these cryptocurrencies by converting Tetra into a digital BENQI currency.

Binance Exchange, for example, is one of the largest cryptocurrencies with the ability to deposit Fiat currencies. The popular money changer first started operating in China and later moved its headquarters to the island of Malta in the European Union. The reason for the high popularity of Binance Exchange is the possibility of performing services related to converting one cryptocurrency to another cryptocurrency. BENQI very well received this exchange in 2017, and since then, it has started to work as one of the most critical exchange offices in the world.

After completing the authentication steps in this exchange, you must choose a payment method. Here you can use a credit or debit card or make your payment by BENQI transfer. After confirming the deposit of one of the leading digital currencies such as Bitcoin, Ethereum, Tether, or Binance, you can buy QI tokens from the exchanges or the BENQI digital currency website.

BENQI digital currency price history

The price of BENQI digital currency has fluctuated significantly since its introduction in late August 2021. The price of the BENQI digital currency on August 19 was estimated at around zero dollars. However, the cost of the QI token reached its highest level in just a few days. And each receipt of these cryptocurrencies could sell for close to $ 0.4. Of course, the price of QI digital currency fell after this peak. But again, on August 28, it could cross the $ 0.3 mark.

Concluding remarks

BENQI digital currency seems to be gaining a particular share of the cryptocurrencies’ lucrative market. The Defi network and its facilities to all its users worldwide are still in the early stages of development; So there is still a long way to go before it is widely accepted. Meanwhile, platforms such as the BENQI Digital Currency Platform plan to pave the way for Defi.

By adapting the banking platform more closely to the DAO guidance model, the community will gain more influence and shape it according to its needs. Users can benefit from an indirect source of income by purchasing QI tokens of this platform. In addition to gaining the ability to submit offers and receive voting rights.

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