BENQi

Based in Costa Mesa, CA, BENQi is a decentralized finance platform offering innovative lending, borrowing, and liquid staking solutions within the Avalanche ecosystem, enabling users to efficiently manage their crypto assets. BENQi, founded in 2021, is a decentralized finance platform focused on providing lending and borrowing services for crypto assets. The company was established in Costa Mesa, California, by founders Dan Mgbor, Hannu Kuusi, and JD Gagnon. In April 2021, BENQi raised USD 6 mn in a venture funding round led by Ascensive Asset Management, with participation from several prominent investors, including Arrington Capital and Ava Labs, Inc.

The company has completed a single funding round, raising a total of USD 6 mn. BENQi offers a comprehensive suite of decentralized finance (DeFi) products, primarily focusing on lending, borrowing, and liquid staking services within the Avalanche ecosystem. The core offerings include a DeFi Lending & Borrowing protocol, where users can lend and borrow crypto assets to earn interest and rewards, and a Liquid Staking protocol that allows users to stake AVAX tokens to receive sAVAX, which accrues value over time. This liquid staking service addresses the need for capital efficiency, enabling users to utilize their staked assets across various DeFi platforms.

The company targets a wide range of users, including individual investors looking to optimize their crypto portfolios and institutional players interested in leveraging DeFi opportunities. BENQi's services are accessible globally, with a particular focus on markets that engage heavily in cryptocurrency activities, including North America, Europe, and parts of Asia. BENQi generates revenue primarily through transaction fees associated with its lending and borrowing protocols, as well as fees from its liquid staking services. Users engage in these services by depositing their crypto assets, which then can be lent out to other users or staked for rewards.

For instance, a user supplying AVAX to the lending protocol would earn interest on their deposited assets, while also having the option to stake AVAX to earn sAVAX. The transaction structure is predominantly direct-to-consumer, as individual users participate directly in the platform. Additionally, the company facilitates validator operations, where users pay a weekly fee to maintain their validator nodes, further contributing to the revenue stream. The focus on competitive yields and user rewards enhances the overall attractiveness of the platform's financial offerings.

Following its recent funding in April 2021, BENQi plans to utilize the USD 6 mn raised to develop yield-bearing tokens and issue assets that can be borrowed and locked into other DeFi protocols to generate additional yield. The company aims to expand its product offerings and enhance its existing protocols to attract a broader user base. BENQi is also exploring opportunities to penetrate new markets in Asia and Europe by the end of 2022, targeting regions with a growing interest in decentralized finance.