BenQi is a renouned lending protocol on Avalanche, offering lending and borrowing of BTC, ETH, AVAX, LINK and multiple stablecoins. The protocol secures over $300M in deposits. On top of that, BenQi offers liquid staking for the AVAX token called sAVAX. The strategy recursively lends sAVAX on BenQi and earns interest in return.

Risk Level — 'A'


The strategy earns AVAX staking yield, as well as interest based on demand for sAVAX liquidity paid by the borrowers on BenQi, and therefore can be attributed to the real yield narrative.

Why invest?

The strategy benefits from elevated on-chain activity and can serve as a sustainable way to earn yield on AVAX holdings.

What’s inside?

User funds are converted into sAVAX and are deposited on BenQi via Yield Yak. Supplied sAVAX is used by the borrowers to take out loans against wstETH. In return, sAVAX lenders receive lending APY plus QI incentives. Accrued rewards are automatically compounded by Yield Yak.

Safety Scoring

Simplicity - 5/5Longevity - 5/5Protocol safety - 5/5Overall score - 5/5

Strategy is easy to understand and execute. No leverage is involved. Losses are highly unlikely.

Strategy has been running for more than 8 months with no critical issues and no changes in code base

Utilized protocol has been audited by multiple firms, and had no exploits or hacks in the past.

Low risk

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