BENQI
Crypto Overview
Project Overview
BENQI is a decentralized finance (DeFi) protocol built on the Avalanche network. The QI token serves as the protocol's governance token, allowing holders to participate in decision-making regarding protocol parameters and treasury management.
Intended Utility
The primary purpose of BENQI is to provide lending and borrowing services on the Avalanche network, with QI token holders having governance rights over the protocol. The platform aims to enable users to supply assets as collateral and borrow other assets, similar to conventional DeFi lending protocols.
Actual Utility Assessment
The protocol has achieved significant adoption within the Avalanche ecosystem, with substantial Total Value Locked (TVL) in its smart contracts. The QI token is actively used for governance voting and protocol parameter adjustments. Development activity remains consistent, with regular updates and improvements to the protocol.
Token Distribution and Founder Analysis
The token distribution includes allocations for the team, advisors, and early investors with appropriate vesting schedules. The team maintains transparency regarding token unlocks and treasury management. Development efforts appear to outweigh marketing activities, suggesting a focus on building sustainable infrastructure.
Revenue Model Analysis
The protocol generates revenue through lending and borrowing activities, which involves interest-bearing mechanisms. While the technology itself is sophisticated and well-developed, the core business model relies on interest-based financial services.
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.
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You can change your vote if you change your mind.