Overview
BENQI is an Avalanche-native decentralized finance platform that combines liquid staking, lending & borrowing, and validator bootstrapping into a single experience. It is designed to make AVAX participation more capital-efficient by converting staked AVAX into a liquid token (sAVAX) that continues to accrue value while remaining usable across DeFi. At the same time, BENQI provides a traditional DeFi lending and borrowing market, and on-ramps for validator operators through its Ignite program. The protocol is backed by security partners and emphasizes robust protections for users and their funds.
Core capabilities
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Liquid Staking (sAVAX): Stake AVAX to receive sAVAX, a liquid derivative that continually accrues value denominated in AVAX. sAVAX can be used across DeFi ecosystems, enabling stakers to both earn network rewards and put their capital to work.
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Lending & Borrowing: Supply assets to BENQI’s markets to earn interest and protocol rewards, or borrow against supported collateral. The lending markets are integrated with the broader Avalanche DeFi stack to enable composability and yield optimization.
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Ignite (Validator Bootstrapping): A program to reduce the upfront cost and complexity of running an Avalanche validator. Ignite offers options to pay weekly validation fees or meet staking and token requirements so more operators can help secure the network.
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Node Voting & QI Miles: Users can engage with validator economics by using QI Miles to vote for validators and capture validator-related benefits. This mechanism aligns community incentives and offers pathways for users to earn additional AVAX rewards.
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Security & Audits: BENQI partners with leading security firms and bug-bounty platforms to reduce systemic risk. These partnerships aim to ensure smart contract integrity and ongoing monitoring.
Key features explained
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sAVAX liquidity: By receiving a liquid token in exchange for staking, users are no longer forced to choose between staking rewards and DeFi participation. sAVAX accrues value over time and can be used as collateral or deposited into yield strategies.
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Composability across Avalanche: BENQI is built to interoperate with the Avalanche ecosystem, enabling users to leverage deposited tokens in other DeFi protocols for additional yield.
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Accessible validator participation: The Ignite pathway lowers technical and capital barriers, letting smaller operators and community members participate in network validation.
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Governance-adjacent mechanisms: With node voting and reward structures tied to QI Miles, BENQI creates on-chain incentive flows that encourage responsible validator selection and community engagement.
Security and trust
BENQI emphasizes security through third-party audits, bug-bounty programs, and partnerships with firms specializing in protocol assurance. These measures include continuous monitoring, responsible disclosure programs, and collaboration with industry security leaders to mitigate vulnerabilities and maintain operational integrity.
Why choose BENQI
BENQI is suited for users who want to combine staking rewards with active DeFi participation, or who seek a single gateway to lending, borrowing, and validator-related products on Avalanche. The platform’s focus on liquid staking, composability, and validator accessibility makes it attractive for both retail and institutional participants looking to maximize capital efficiency while contributing to network security.
Getting started
To begin, users can connect a compatible wallet to the BENQI app, stake AVAX for sAVAX, or supply assets to lending markets. For validator operators, Ignite provides options and guidance to start validating on Avalanche. Throughout the process, BENQI’s documentation and security disclosures help users understand risks and operational details.
Conclusion
BENQI provides a cohesive set of DeFi building blocks for the Avalanche ecosystem, centred on liquid staking and capital efficiency. With a broad feature set, validator support options, and a focus on security, it aims to be a primary entry point for AVAX holders who want to earn, lend, borrow, and actively participate in network validation.


