Joint Liquidity Mining on Avalanche with BENQI (QI Token) on KyberSwap

Collaborations/Integrations/Grants
1
  1. Project Introduction

BENQI is a decentralized non-custodial liquidity market and liquid staking protocol built on Avalanche.

The lending protocol, which has over $2B in TVL, allows users to lend, borrow, or earn interest using their digital assets.

The liquid staking protocol, which currently has over $100M in staked, tokenizes staked AVAX and allows users to freely use it within Decentralized Finance dApps such as Automated Market Makers (AMMs), Lending & Borrowing Protocols, Yield Aggregators, etc. Additional information on BENQI’s products can be found here.

  1. Proposal Summary, Motivation and Key Details

Currently, there is about $175M of liquidity for Staked AVAX pools on other AMM’s on Avalanche. KyberSwap’s capital efficiency makes it uniquely suitable for correlated pairs, especially highly correlated pairs, allowing for trading fees of 0.02-0.08% as opposed to the standard 0.3%. Since paired AVAX and sAVAX fall into this category, BENQI is proposing a joint liquidity mining program with Kyber to help improve liquidity and trading conditions for newly created Staked AVAX (sAVAX) pools as well as for QI and KNC tokens on KyberSwap. An additional sAVAX/KNC pool will further incentivize the peg and bring volume for both other pools, sAVAX/AVAX and KNC/AVAX.

During the campaign period, liquidity providers (LPs) who add liquidity (deposit tokens) on the eligible sAVAX, QI and KNC pools will receive LP tokens that can be staked on KyberSwap’s Farm page for additional QI and KNC token rewards. The sustainable trading conditions will also allow for organic trading demand that will drive more volume and therefore more LP fees for LP’s. Based on the success of the first phase, similar subsequent LM cycles can be executed.

As part of the campaign launch, the farms will be listed on https://staking.benqiI.fi/defi, and there will also be joint marketing efforts between BENQI KyberSwap. BENQI and Kyber will also explore potentially adding KNC as collateral on BENQI as well as doing future farms together.

  1. KNC amount requested

• $106,000 USD in KNC

  1. Amount of tokens project is contributing

• 2,100,000 QI (about $100,000 USD in QI)

  1. Network

• Avalanche

  1. Pools

• SAVAX/AVAX, amp=30: 2,100,000 in QI over 2 weeks

• SAVAX/KNC, amp=1.2: $74,000 in KNC over 4 weeks

• QI/KNC, amp=1.1: $32,000 in KNC over 2 weeks

  1. Vesting

• N/A

  1. Campaign start date and duration

• March 16th

  1. Project Details

• Website: https://BENQI.fi/

• Whitepaper: https://docs.BENQI.fi/

• Twitter: https://twitter.com/BENQIFinance

• Discord: discord.gg/jyPAjZjwk6

• Telegram: t.me/BENQIFinance

7 Likes
2

Haven’t seen much liquidity mining activity on Kyber recently, so this is nice. It also looks very well architected, and will showcase the benefit of capital efficiency and Kyber’s special technology.

2 Likes
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I think its a good idea :+1: BENQI is quite an established project on the Avalanche network and it would be good to have more Avalanche farms and liquidity onto KyberSwap.
Amount requested is reasonable and if the farms generate enough interest BENQI will add KNC as collateral, which would be GREAT utility for KNC :yum:

1 Like
4

In fact, it doesn’t make much sense. KNC funds should do more valuable things. Several similar proposals have already explained the problem.

1 Like
6

The first few liquidity mining did not produce much value or effect for KNC

1 Like
7

We need to do more liquidity mining and even trading campaigns to attract users consistently, good that this is a big project like benqi

1 Like
8

Finally the next yield farm! we need more farms on Kyber to get more attention. we have too little compared to traderjoe. Benqi is a famous project on Avalanche and we need more like them. should pass this proposal

1 Like
9

i support this. BENQI is one of the popular Avalanche projects so this is a good move. If kyber has the best rates on Avalanche the team needs to get more partnerships like this so people to know about it. Liquidity is also low and more liquidity mining is needed to draw attention of lps from other dexes. We can do a lot more here.

1 Like