Benqi Finance, a decentralized non-custodial market protocol, has raised $6 million in a strategic funding round to advance its mission of bridging DeFi and institutional networks. The round was led by Ascensive Assets, with participation from prominent investors such as:
- Arrington XRP Capital
- Dragonfly Capital
- Mechanism Capital
- Spartan Group
Other backers included Ava Labs, Morningstar Ventures, GBV Capital, Moon Inc, and leading liquidity provider Skynet Trading.
About Benqi Finance
Bridging DeFi and Institutional Networks
Benqi Finance aims to create algorithmic liquidity markets on the Avalanche blockchain, enabling users to:
- Earn interest on crypto assets.
- Access over-collateralized loans.
- Provide liquidity and earn QI governance tokens as rewards.
Why Avalanche?
Benqi chose Avalanche due to Ethereum’s limitations, such as high gas fees and slower transaction speeds. Avalanche offers:
- High Throughput: Processes up to 4,500 transactions per second.
- Instant Finality: Ensures near-instant transaction confirmations.
Key Features and Upcoming Developments
BENQI Public Sale
The BENQI public token sale is scheduled for April 28, 2024, on Tokensoft. This will be followed by the protocol’s mainnet launch in May.
Partnerships and Integrations
Benqi will integrate with Pangolin, a decentralized exchange (DEX) on Avalanche, enabling:
- Low Fees: Cost-efficient transactions for DeFi users.
- Fast Settlement: Quick execution of trades and liquidity provision.
- Cross-Chain Support: Trading between Avalanche and Ethereum assets.
Avalanche’s Role in Benqi’s Growth
Avalanche’s robust blockchain ecosystem is key to Benqi’s strategy:
- Growing Adoption: Several protocols, including SushiSwap, have migrated to Avalanche to capitalize on its efficiency.
- AVAX Token Performance:
- AVAX surged 13% in a single day, reaching $40.
- It gained 32% over the past week, though it remains below its $55 ATH (All-Time High) from February 2024.
- With a circulating supply of 128.5 million AVAX tokens, the network’s market cap stands at $5 billion.
Conclusion
The $6M funding round positions Benqi Finance to become a leading player in the Avalanche ecosystem, offering an efficient alternative to Ethereum-based liquidity protocols. With its focus on lending, borrowing, and liquidity rewards, Benqi aims to bring institutional players into the DeFi space while enhancing user experiences.
The upcoming BENQI public sale on April 28 and its integration with Pangolin mark critical milestones in its roadmap, further solidifying Avalanche’s status as a hub for innovative blockchain solutions.
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