BENQI
Crypto Overview
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.
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.