BENQI has just made an announcement about the launch of a new farming project. The liquid staking protocol has confirmed it is a liquidity yield farming protocol that is concentrated.
BENQI, which is also a major non-custodial liquidity market promoting decentralization, has collaborated with KyberSwap to offer the new facility to the users.
BENQI has been based on the Avalanche blockchain and the Benqi Liquid Staked AVAX (sAVAX) is the reward token the users get for staking.
As the users stake their AVAX token on the Benqi Liquidy Staking (BLS) protocol, they get the opportunity of receiving sAVAX as a reward token.
Now, a new Liquidity Yield Farming protocol has been launched by BENQI in collaboration with KyberSwap.
New Collaboration Purpose
For the record, partnerships have been formed between BENQI and KyberSwap on multiple instances. On a number of occasions, BENQI and KyberSwap have collaborated to launch new and useful protocols for the benefit of users.
This time, it is to offer benefits related to capital efficiency for which BENQI has formed a partnership with KyberSwap.
Protocol to be used through Yeti Finance
The investors will be able to use the protocol through Yeti Finance, which is a major lending protocol powered by Avalanche and offers cross-margin lending.
The platform allows the users to borrow cryptocurrencies for staking, 21 times more than their actual (held) portfolio. The held portfolio must consist of the liquidity provider tokes.
In the case of Yeti Finance and the BENQI protocol, it is sAVAX that the users have to engage in. In addition to sAVAX, the users can also interact with stablecoins that are yield-bearing.
Another major benefit of using such a service is that the users borrowing them only form a single debt position. Due to the very nature of the position, zero interest is applied on the loans.
When the users borrow funds from the Yeti Finance protocol, they receive funds in the form of YUSD. It is an overcollateralized stablecoin that the users can use to their benefit.
The users can acquire additional assets with the help of stablecoin. The users can redeposit these funds into Yeti Finance to bring in more leverage and open stronger positions.
Project Began on August 17, 2022
It was on August 17, 2022, when the particular protocol was launched. With the launch of the new protocol, the users will have the ability to add liquidity to YUSD and sAVAX pools that are eligible.
By adding funds to the particular pools, the users can earn YETI, QI, and KNC in the form of rewards.
The protocol has provided the full list of the eligibility requirements and other details that the users can adapt for liquidity pools.