BENQI
Crypto Overview
Overview
BENQI is a decentralized finance (DeFi) protocol built on the Avalanche blockchain. The QI token serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters and development.
Intended Utility
The QI token is designed to serve multiple purposes within the BENQI ecosystem: Governance rights for protocol decisions, Staking rewards for providing liquidity, and Revenue sharing from protocol fees.
Business Model Assessment
The core business model revolves around providing lending and borrowing services on the Avalanche network. While lending and borrowing typically involve interest which would be problematic from a Shariah perspective, BENQI also offers non-interest bearing services such as liquidity provision and governance.
Actual Utility and Adoption
The platform has demonstrated significant adoption within the Avalanche ecosystem, with substantial Total Value Locked (TVL) and active user participation in governance. The development team maintains regular updates and improvements to the protocol.
Token Distribution and Founder Analysis
The token distribution includes allocations for team members, early investors, and the community. There are vesting schedules in place for team and investor allocations, showing consideration for long-term alignment. The founding team has maintained consistent involvement in the project's development.
Technology and Revenue Model Evaluation
While part of BENQI's operations involve interest-bearing activities, the token itself is primarily used for governance and platform participation rather than direct lending. The protocol's technology is based on proven smart contract frameworks with regular security audits.
Crypto Impact
To assign a comfort level investing in BENQI from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to BENQI.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.