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Algorithmic Liquidity Protocol, BENQI, Surpasses $1 Billion in Total Value Locked Within Days of Avalanche Launch

Launched on the Avalanche Network on August 19th, decentralized non-custodial liquidity market protocol BENQI has set a new Defi milestone after exceeding $1 billion in total value locked (TVL) in under five days.

New Liquidity Market Protocol Benefits From Defi Community Rewards Confidence

Built on Avalanche’s network, BENQI, the algorithmic liquidity market protocol bridging decentralized finance (defi) and institutional networks, has crossed $1 billion in total value locked (TVL) since its mainnet launch on August 19th.

BENQI’s achievement follows its recent collaboration with the Avalanche Foundation and its initiation of a joint liquidity mining program, both in celebration of the platform’s launch and the rapid growth of the Defi sector within the Avalanche ecosystem.

As part of the joint liquidity mining program, $3 million in AVAX (Avalanche’s native token) will be allocated as liquidity incentives for BENQI users, which will be used to reward users involved in borrowing and lending AVAX, ETH, LINK, WBTC, USDT, and DAI via BENQI.

The BENQI milestone is significant considering that it took Aave, a Defi lending protocol built on Ethereum, a little over eight months to reach the billion-dollar mark. According to data available on BENQI’s official website, the decentralized protocol has raised $1,025,129,347.82 since its launch last Thursday, cementing it as one of the few blockchain projects to gain such widespread user support and backing.

Shaping The Outlook for Defi Services

According to the latest figures, TVL across defi protocols operating on Avalanche stood at $1.65 billion as of August 24th, a sharp rise from its July TVL of $183.87 million. The data further clarifies that BENQI commands approximately 55% of the total, outpacing other established protocols on the Avalanche chain, such as Pangolin and Trader Joe.

With several cross-chain bridges, both live and in-production, for networks like Ethereum (ETH), Binance Smart Chain (BSC), and Polkadot (DOT), throughput of over 4500 transactions per second, more than 888 validator nodes scalability, and compatibility, Avalanche aims to become the decentralized financial settlement layer.

By leveraging Avalanche’s embedded attributes, BENQI overcomes two key issues clouding wider defi adoption: network congestion and high fees. Compared to other defi protocols operating on Ethereum, BENQI’s liquidity market protocol benefits from a scalable and affordable framework, improving overall defi accessibility.

For Avalanche, BENQI’s recent success is likely the first of many to follow as the highly performant blockchain challenges Ethereum’s Defi dominance. Through Avalanche Rush, the liquidity incentive program initiated by the blockchain’s foundation, other prominent protocols are lining up to join the ecosystem.

Aave and Curve, which command the top two spots in the DeFi universe by TVL, are also set to launch on Avalanche. They will benefit from $20 million and $7 million worth of liquidity mining incentives, respectively, in the form of AVAX tokens earmarked through Avalanche Rush.

Source: News.Bitcoin.com