BENQI

Overview

BENQI is a decentralized finance (DeFi) protocol built on the Avalanche blockchain, launched in 2021. The QI token serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters and development.

Purpose and Utility

BENQI's primary function is to provide liquidity to the Avalanche ecosystem through its lending and borrowing platform. The QI token specifically enables governance voting and can be staked for protocol rewards.

Business Model Analysis

The protocol generates value through facilitating lending and borrowing services, which inherently involves interest-based transactions. While the platform's technology is innovative, its core business model centers around lending for profit, which is problematic from an Islamic finance perspective.

Real-World Adoption

BENQI has achieved significant adoption within the Avalanche ecosystem, with substantial total value locked (TVL) and active users. The protocol has established partnerships with various projects in the Avalanche ecosystem and maintains regular development activity.

Token Distribution

The QI token distribution includes allocations for the team, early investors, and community initiatives. While there are vesting schedules in place, the primary concern isn't the token distribution but rather the nature of the protocol's core activities.