BENQI Completes $6 Million Funding Round Led By Ascensive
New York, USA, 27. April 2021,
BENQI, Avalanche’s algorithmic liquidity protocol, is proud to announce that it has received $6 million in funding from external investors and advisors. With this round of funding, Avalanche’s borrowing and lending protocol will further develop its services and functionality.
The BENQI team successfully closed a $6 million funding round, led by Ascensive from several outside investors and advisors. Participants include Dragonfly Capital, Arrington XRP Capital, Mechanism Capital, Spartan Group, Rarestone, Woodstock, Ava Labs, MarketAcross, Morningstar Ventures, and many other established companies in the industry.
The team’s vision to introduce a credit and loan protocol for Avalanche users and link it to other blockchains will bring more attention to the decentralized financial space.
The BENQI team, founded by a group of blockchain and Ur-DeFi advocates, believes the future of finance will rely on Avalanche’s revolutionary consensus protocol. The high throughput and speed of the ecosystem will prove invaluable to BENQI. The team believes DeFi’s business on Avalanche is poised to explode, catalyzed by BENQI, and could rival DeFi’s growth on Ethereum and Binance Smart Chain.
Because we are self-FFi users and recognize the current problems, we are introducing BENQI as one of the first liquidity market protocols on Avalanche. The pain of grid congestion and high grid costs will be a thing of the past, and ensuring that assets come to market to work for Avalanche will open up new opportunities for open, transparent and conflict-free financing, said BENQI’s JD Gagnon.
BENQI will provide a cheaper and faster alternative to Ethereum-based solutions as a borrowing and lending protocol with bridges to other blockchains. The costs associated with decentralised funding should be significantly reduced. By deploying smart contracts in the test network, BENQI will reach the backbone stage in May 2021.
Ultimately, BENQI wants to compete with AAVE, Compound and CREAM. With lower costs and immediate transactions through Avalanche’s infrastructure, the ecosystem will facilitate the free flow of assets. In addition, BENQI plans to operate Avalanche sub-networks – similar to Polkadot parachutes – to enable validation nodes to improve compliance if required by institutional networks.
The BENQI protocol will run for five years to promote the production of liquids by issuing IQ control tokens to users. Additionally, current DeFi users can connect their assets to Avalanche via the Avalanche Ethereum Bridge (aeb.xyz).
In subsequent iterations of the protocol, BENQI will introduce new resources – based on what the community comes up with – as well as Flash credits and other innovative features. Further information on these updates will be announced through official communication channels.
BENQI’s vision to connect decentralized financial (DeFi) and institutional networks leverages Avalanche’s highly scalable network and begins with the launch of BENQI in Avalanche’s C-Chain. By focusing on ease of use and low cost, the BENQI protocol will enable a new generation of open financial applications and further democratize access to WiFi for the masses.