DeFi Benqi Platform Records $1bln TVL within Days of Roll Out

BENQI, a liquidity market covenant, has surpassed $1 billion in total value locked (TVL), just under a week after debuting on the Avalanche (AVAX) platform, a herculean feat that shows the rapid development of DeFi lending focused offerings. On Sunday evening, Benqi Finance celebrated the feat on Twitter, thanking its community for their tremendous support.

According to the August 21 update, the protocol recorded $200 million in TVL in the initial 24 hours and $500 million in the foremost two days. Total value locked in DeFi denotes the assets that are presently staked on a particular covenant. The number does not reflect existing loans, but rather the entire quantity of tokens received by a particular application.

According to industry-wide TVL statistics, there has been a significant increase in DeFi operations. Approximately $160 billion in TVL was recorded throughout the DeFi network while writing this article. Aave leads the market with TVL of 8.82%. Surprisingly, Aave surpassed the $1 billion TVL mark several months after its first debut.

The Avalanche smart contract platform has lately witnessed a surge in interest, with Pangolin — another DeFi protocol focusing on decentralized exchange services — surpassing more than $320 million in TVL.

Avalanche is doing its bit to bring additional coders to its platform, having just launched a $180 million liquidity mining incentive scheme. The Avalanche Rush initiative fosters additional apps and tokens to move to the Avalanche platform. When queried what renders Avalanche so appealing to developers, BENQI co-founder J.D. Gagnon told Cointelegraph that it does offer a great deal of optimized interface, both for users and developers:

“First and foremost, Avalanche, particularly the C-chain (the smart contract chain), is a fantastic environment to be a part of, both as a consumer and as a creator. It outperforms several other networks because to its quick completion, cheap costs, and security assurances. Several users have been barred from engaging in the Ethereum DeFi boom owing to high transaction fees, a problem that has been mostly addressed on Avalanche.”

Gagnon said that the recent development of Binance Smart Chain and Polygon “showed there is a large demand for inexpensive, effective, and safe networks for economic growth.” He anticipates that Avalanche will be a major driver of creating innovation.