“The most important gap today is the connection between ecosystem value and AVAX value accrual.”
In our latest Freshman Questions, we explore the @avax Foundation’s Economic Research Agenda and why understanding how value is created, captured and distributed matters for the long-term sustainability of Avalanche.
Read the full article 🔺👇
3.9/ 5
Our score
Good
Lending model
Pooled
Chains
Avalanche
Main collateral assets
AVAXsAVAX
Audited
Yes
Governance token
QI
What is BENQI?
BENQI is an Avalanche-native decentralized finance protocol that combines a pooled lending and borrowing market with the sAVAX liquid staking system. Launched in 2021, the protocol lets users supply assets to earn interest, take out overcollateralized loans, or stake AVAX to receive yield-bearing sAVAX without running their own validator nodes.
Team and backing
The protocol was created by Rome Blockchain Labs Inc., led by co-founders JD Gagnon, Hannu Kuusi, and Alexander Shul. Gagnon previously created the Velox algorithmic trading platform and founded Scotch & Ramen Media, while Kuusi brought experience building financial technology and military infrastructure. In April 2021, the team raised $6M in a strategic funding round led by Ascensive Assets, alongside a $3.8M public token sale.
Lending mechanics and liquid staking
BENQI operates non-custodial pooled markets on the Avalanche C-Chain. Lenders deposit digital assets into shared liquidity pools to earn variable interest, while borrowers draw loans against their deposited collateral. Collateral limits and liquidation thresholds are governed by automated risk parameters, and borrowers track their safety margin via an on-chain Health Factor. Repayments have no fixed dates or schedules. Alongside lending, BENQI provides sAVAX liquid staking, which mints a yield-bearing receipt token that grows in value relative to AVAX as consensus staking rewards accrue. Through its Ignite service, node operators can also spin up an Avalanche validator from 8 AVAX per week instead of posting the full 2,000 AVAX stake upfront.
Availability and fees
Accessing BENQI requires an Avalanche-compatible web3 wallet. There are no KYC checks. Interest rates for borrowing and lending float according to pool utilization. Ignite validator rentals start at 8 AVAX weekly.
Audits and track record
BENQI deployed on Avalanche in August 2021 as part of the initial Avalanche Rush incentive program with a $3M liquidity allocation. Over its operating history, the protocol's smart contracts have undergone audits by firms including Halborn in 2021, Certora in 2022, Dedaub in 2023, Cyfrin in 2024, and both Zellic and Chaos Labs in 2025. BENQI also maintains an active bug bounty program. By October 2026, the lending market held approximately $118M in total value locked.
Protocol risks
Variable interest rates can spike during periods of high borrowing demand, increasing borrow costs abruptly. Sudden price declines in collateral assets or depegging events for wrapped and staked assets can trigger automated liquidations. Users are also exposed to underlying smart contract vulnerabilities across lending pools and liquid staking contracts.
Founders
JD GagnonCo-Founder
Co-founder of Rome Blockchain Labs, creator of the Velox algorithmic trading platform, and founder of Scotch & Ramen Media.
Hannu KuusiCo-Founder
Co-founder of Rome Blockchain Labs with a background in institutional fintech and military infrastructure.
Alexander ShulCo-Founder
Co-founder of Rome Blockchain Labs managing development of the BENQI liquidity market platform.
Best for:Avalanche holders seeking staking liquidityDeFi borrowers managing collateral on-chainValidators launching nodes on lower budgets
Pros and cons
Pros
- Non-custodial access requires no KYC identity verification
- Multiple third-party smart contract audits by firms including Halborn, Cyfrin, and Zellic
- Liquid staked sAVAX remains usable as collateral across Avalanche DeFi
- Ignite lowers Avalanche validator entry costs to 8 AVAX weekly
Cons
- Restricted exclusively to the Avalanche C-Chain network
- Variable borrow interest rates can spike during pool utilization surges
- Collateral positions face liquidation penalties if asset prices crash
Our review
3.9/5
Good
BENQI is Avalanche's foundational lending and liquid staking suite, offering deep local liquidity alongside single-chain concentration risk.
BENQI combines non-custodial pooled lending markets with its sAVAX liquid staking token. Developed by Rome Blockchain Labs and launched in August 2021, the protocol's April 2021 strategic round raised $6M. As of October 16, 2026, the lending market held about $118M in TVL, and BENQI had over 80,000 users and more than 50 protocol integrations.
Borrowers can supply core assets, stake AVAX to receive sAVAX yield tokens, and reuse those derivative tokens as collateral inside the lending pool to borrow assets without selling their base position. The BENQI Ignite service also provides a validator onboarding mechanism, lowering the operational barrier to running an Avalanche node down to 8 AVAX per week instead of locking the standard 2,000 AVAX stake upfront.
However, the protocol has distinct trade-offs:
- BENQI is restricted entirely to Avalanche C-Chain, offering zero multichain collateral support for users who operate across other layer-1 or layer-2 networks.
- Its variable rate model exposes borrowers to sudden rate spikes during periods of high liquidity utilization.
- Lending and staking introduce layered systemic risks, where liquidation cascading or depegging of derivative collateral like sAVAX can impact pool solvency.
Security is reinforced through multiple audits by firms including Halborn, Certora, Dedaub, Cyfrin, Zellic, and Chaos Labs, supported by a bug bounty program. BENQI suits active Avalanche DeFi participants seeking capital efficiency and native staking yield, while cross-chain traders looking for unified collateral across multiple networks will require broader alternatives.
Sources (2)
Specs
| KYC required ⓘ | No · unverified |
|---|---|
| Lending model | Pooled |
| Chains | Avalanche |
| Main collateral assets | AVAX, sAVAX · unverified |
| Audited | Yes |
| Bug bounty | Yes |
| Governance token | QI |
| Isolated markets | Yes · unverified |
| Own stablecoin | No · unverified |
| Rates | Variable · unverified |
Not disclosed by the provider: Flash loans, Permissionless markets, Real-world-asset collateral.
Data from the provider's website and public sources. Fees and availability change; confirm on the official site before you sign up.
Key features
Pooled lending markets
Deposit crypto assets into shared pools on Avalanche to earn variable yields or draw overcollateralized loans.
sAVAX liquid staking
Stake AVAX on the Avalanche C-Chain to receive sAVAX, a yield-bearing token that appreciates against AVAX.
Ignite validator deployment
Rent validation stake starting from 8 AVAX per week without locking the 2,000 AVAX network requirement.
Node voting delegation
Spend BENQI Miles to vote for chosen Avalanche validators and earn delegated staking rewards.
Health Factor monitoring
Track real-time liquidation margins and borrow health directly from an integrated position dashboard.
Inside BENQI
Liquid Staking
Lets users stake AVAX to receive yield-bearing sAVAX, which accrues network staking rewards while remaining usable across DeFi protocols.
Lending & Borrowing
Provides pooled liquidity markets where users supply assets to earn interest and QI rewards, or borrow crypto against deposited collateral.
Ignite
A validator bootstrapping service that allows operators to launch an Avalanche validator starting from 8 AVAX per week without locking 2,000 AVAX upfront.
Node Voting
Enables users to spend BENQI Miles to vote for validator nodes and earn AVAX rewards generated through delegation.
BENQI screenshots
What users say about BENQI
User feedback directly evaluating the platform is extremely limited, with references primarily consisting of general mentions within DeFi discussions or informational links. There are not enough substantive user experiences to establish clear recurring themes.
Based on 2 Reddit posts and comments from the last 12 months, checked Oct 20, 2026. These are posts by users on other sites, not reviews submitted on CryptoReview.
User reviews
No user reviews yet. Have you used BENQI? Share your experience below.
Funding and investors
$9.8MTotal raised
3Rounds
13Investors
-
Strategic Apr 2021 $6MSource
-
Funding round Apr 2021 $6MGB Genesis Block VenturesVenture capital Lead
Arrington CapitalHedge fund
AA Ascensive AssetsVenture capital
AL Ava LabsCorporate VC
DR DragonflyVenture capital
MC Mechanism CapitalVenture capital
MV Morningstar VenturesVenture capital
RC Rarestone CapitalVenture capital
ST Skynet TradingVenture capital
Spartan GroupVenture capital
TR TRGCVenture capital
VC Vendetta CapitalVenture capital
ZC ZBS CAPITALVenture capital
-
Strategic Apr 2021 $6MSource
FAQ
Who founded BENQI?
BENQI was founded in 2021 by JD Gagnon, Hannu Kuusi, and Alexander Shul through Rome Blockchain Labs Inc. Prior to BENQI, Gagnon created the Velox algorithmic trading platform and Kuusi built financial technology infrastructure.
What chains does BENQI support?
BENQI operates exclusively on the Avalanche C-Chain. All lending, borrowing, and liquid staking operations settle natively on Avalanche.
Does BENQI require KYC?
No, BENQI does not require KYC verification. Anyone with a compatible Web3 wallet on Avalanche can access the protocol directly.
What is sAVAX and how does it work?
sAVAX is BENQI's liquid staking token received when staking AVAX on the Avalanche C-Chain. Staking rewards accrue directly into the token, meaning the exchange rate of sAVAX relative to AVAX increases over time while remaining liquid for use as collateral.
Has BENQI been audited?
Yes. Security firms that have completed audits for BENQI include Halborn in 2021, Certora in 2022, Dedaub in 2023, Cyfrin in 2024, and both Zellic and Chaos Labs in 2025. The protocol also maintains an active bug bounty program.
Does BENQI have a native governance token?
Yes, BENQI uses the QI token for governance. The token was launched on April 28, 2021, with a total supply of 7.2 billion tokens.
Latest from BENQI on X
Halloween costumes are off, but the BENQI Arcade is staying open 🎃🕹️
A huge thank you to everyone who played, chased high scores and joined Iggy for Halloween 👻
There’s still time to play, but tomorrow we reveal the winners 🏆👇
https://t.co/3TsUPXsOoh https://t.co/wXfZfJG8pv
A huge thank you to everyone who played, chased high scores and joined Iggy for Halloween 👻
There’s still time to play, but tomorrow we reveal the winners 🏆👇
https://t.co/3TsUPXsOoh https://t.co/wXfZfJG8pv
🚨 Last few hours to WIN 10 $sAVAX in the BENQI Arcade 🎃
Clock’s ticking, and Iggy's counting the scores. Closes midnight ET tonight.
🎃 Iggy-Man
👻 Iggy-Man Story Mode
👾 FUD Invaders
🏔️ @avax Crossing
Check the full details and play 🕹️👇
Clock’s ticking, and Iggy's counting the scores. Closes midnight ET tonight.
🎃 Iggy-Man
👻 Iggy-Man Story Mode
👾 FUD Invaders
🏔️ @avax Crossing
Check the full details and play 🕹️👇
👋 @avax community 🔺
Today’s your last chance to WIN 10 $sAVAX in the BENQI Arcade 🎃
Competition ends tonight at midnight ET. Check out the full details here 🕹️👇
Today’s your last chance to WIN 10 $sAVAX in the BENQI Arcade 🎃
Competition ends tonight at midnight ET. Check out the full details here 🕹️👇
Iggy-Man is hungry 🎃
How many ghosts can you gobble up? 👻👇
https://t.co/3TsUPXsOoh https://t.co/QxyRxOc56h
How many ghosts can you gobble up? 👻👇
https://t.co/3TsUPXsOoh https://t.co/QxyRxOc56h
Recent public posts from @BenqiFinance, shown as published. Not reviewed or endorsed by CryptoReview.
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