BENQI, an avalanche-based loan protocol, reached the billion-dollar TVL mark a few days after its launch.

BENQI reaches $ 1 billion in TVL

BENQI, an algorithmic liquidity market protocol powered by Avalanche’s highly scalable network, recently recorded over $ 1 billion in total locked-in value (TVL) on its decentralized platform since its launch on August 19.

For comparison, it took the Ethereum Aave (AAVE) -based decentralized lending platform around 8 months to reach $ 1 billion in TVL.

BENQI’s achievement comes shortly after the platform announced a partnership with the Avalanche Foundation and launched a joint cash extraction program to commemorate both the launch of the BENQI protocol and the strong growth in the space. DeFi within the Avalanche ecosystem.

Notably, $ 3 million of AVAX will be allocated as liquidity incentives to BENQI users with plans to incorporate additional incentives into the pipeline. AVAX rewards will be distributed to users who lend or borrow AVAX, ETH, LINK, wBTC, USDT and DAI on the BENQI protocol.

For the uninitiated, AVAX is Avalanche’s native token with a fixed max supply and is used to pay fees and secure the Avalanche network through staking. In addition, AVAX can also be used as a basic unit of account between the multiple different ecosystems that thrive on Avalanche.

It should be noted that BENQI recently completed a $ 6 million funding round supported by the Avalanche Foundation, Mechanism Capital, Dragonfly Capital, Arrington XRP Capital and the Spartan Group.

The next round of protocol missions includes the extension of a wide range of high performance financial primitives, including money markets.

BENQI aims to harness the plethora of advantages of the fast, secure and cost-effective avalanche bridge that has effectively minimized the distance between the Avalanche and Ethereum ecosystems. The Avalanche Bridge is built on Intel SGX and makes the process of transferring digital assets to and from the Avalanche and Ethereum ecosystems a seamless experience.

Commenting on the development, JD Gagnon, co-founder of BENQI, noted:

“It has been an amazing week for the team and we are overwhelmed by the amount of support our partners and the Avalanche community have shown us prior to this. The Avalanche Rush initiative coupled with the new Avalanche Bridge has proven to be a major catalyst for the inflow of cash not only for BENQI, but for the rest of the Avalanche DeFi ecosystem. A big thank you to everyone involved! We are currently optimizing the protocol and plan to collaborate with cross-chain projects to Avalanche as part of the Avalanche Rush initiative.

Similar sentiments were echoed by John Wu, president of Ava Labs. Wu said:

“BENQI is launched at a key time for Avalanche users and the DeFi ecosystem at large. Its technology adds a missing piece to the puzzle and will make Avalanche even more appealing to users priced out of other networks. This is an exciting step in a wider community initiative to bring more assets and liquidity to the platform. “