How Could Token Development Like BenQi Redefine the Decentralized Financial Space?

Key Takeaways:

  • Learn about the fundamentals of BenQi, the decentralized finance platform built on the Avalanche blockchain.
  • Discover the power of BenQi’s native token, $QI, which comes with a plethora of functionalities.
  • Find out the prospects of conducting token development like BenQi for your new DeFi business in the current market.

The cryptocurrency space is filled with numerous projects across niches that have garnered immense attention due to an increase in people looking for alternative investment pathways. From Bitcoin and Litecoin to Ethereum and Solana, we have seen the evolution of layer-1 blockchains and their impact on the digital financial system. Avalanche has been among the revolutionary networks that have showered the space with various financial dApps, including BenQi. The immense utility of the platform and its token has made token development like BenQi an attractive option for aspiring cryptopreneurs. This blog discusses the significance of this new-generation financial platform on the Avalanche blockchain ecosystem.

BenQi: A Powerful Decentralized Finance Platform on Avalanche

Launched on the layer-1 blockchain Avalanche, BenQi is a decentralized finance platform that offers users a wide range of functionalities. It mainly focuses on decentralized lending and borrowing and liquid staking. Since its launch, the platform has garnered widespread popularity due to its widespread utility and inclusion of advanced technologies.

  • The dedicated dashboard from the popular crypto research and analytics firm Messari says that over $445 million worth of assets has been locked in total. The application’s native token, $QI, has a market capitalization of $82.29 million and regularly experiences daily trading volumes exceeding $6 million. 
  • The BenQi platform comes with several distinguished facets: BenQi Markets, BenQi Liquid Staking, and Ignite. While the former two focus on retail investors, Ignite aids in bootstrapping Avalanche validators and Subnets through a permissionless infrastructure. Together, BenQi forms a solid DeFi ecosystem with multiple functional arms that make it diverse.
  • The platform utilizes smart contract programs to store and administer funds that can safely handle funds without any intermediary involvement. These solutions facilitate the platform’s diverse array of operations, including lending, borrowing, staking, and unstaking. The overall protocol is public and open-source, meaning anyone can view and verify transactions using Avalanche blockchain explorers. 

Why All the Buzz Around Token Development Like BenQi?

With BenQi becoming a renowned DeFi application in the global ecosystem, it is necessary to explore the platform’s native token of the same name with the ticker $QI. The token has attained popularity ever since the concept of liquid staking became popular in the decentralized financial space. Reports also indicate that $QI’s value could shoot up, given Avalanche’s rising popularity in DeFi.

  • The general purpose of $QI is to serve as a medium for all transactions inside the BenQi ecosystem, including lending and borrowing markets and liquid staking provisions. The QI token can also be used to pay for transactions (Pay-As-You-Go and Staking) inside BenQi’s Ignite ecosystem that lets developers build Avalanche Subnets and validator nodes for business purposes. 
  • QI tokens are also helpful for delegated governance inside the BenQi platform, which results in a unique incentive token, veQI (vote-escrowed QI), that can be used for voting purposes. These tokens serve as representations of the voting power of holders who can opt for specific Avalanche validators to gain additional delegations. They can also be used for direct governance to suggest BIP (BenQi Improvement Proposals) that can aid in improving the application.
  • Additionally, BenQi’s native tokens serve as staking assets on external DeFi platforms, from which holders can accrue rewards over time. By providing such an opportunity, $QI allows people to have passive income options that could strengthen their holdings and the platform’s reputation.

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Why Should You Create a Token Like BenQi?

We saw the previous section clearly outlined the power of QI tokens both inside and outside the application. However, we still haven’t figured out the reasons why one should launch a token like BenQi. From a business perspective, though, things are a little different, as you will see in the points below.

  • Tokens similar to $QI can be used for in-app trading fees for operations like crypto swaps and other financial transactions. Because these tokens exist in-app, the effort required to transfer them becomes considerably less, opening the choice for reduced fees. Doing so allows a DeFi business to thrive in the market as investors show interest in tokens filled with such use cases.
  • Crypto tokens like BenQi can be used for DeFi yield farming purposes, given that they can be staked on external financial dApps. By offering such lucrative opportunities, businesses based on DeFi can attract investors inside their applications just to gain these tokens, from where they can make people use them.
  • Another prime reason businesses choose tokens like BenQi is their potential to adjust to market conditions and trends with necessary technical implementation. These tokens’ utility could expand to options, such as purchasing non-fungible tokens (NFTs) or staking processes that could reward them with NFTs. Another possibility is that such tokens can become interoperable using bridging mechanisms, which can expand their utility across various blockchains.


Thus, we have seen the significance of the BenQi DeFi platform in the Avalanche ecosystem. We also explored how token development like BenQi could pave the way for businesses aspiring to make the most of favorable market conditions. With reports indicating a good time for the Avalanche blockchain, launching tokens like $QI powering a DeFi dApp can indeed be rewarding. If you are interested in developing a DeFi token like BenQi on any blockchain network, our skilled team at Blockchain App Factory can come to your assistance. With over a decade of experience and a wide-ranging portfolio of successful projects, we can be your perfect aid in navigating the complexities of the decentralized crypto space. Talk to us now to get started with your new token development project!

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