What is BenQi?
BenQi is a non-custodial liquidity market protocol on the Avalanche Network. You can lend assets and borrow against those assets on BenQi. Lending assets allows you to earn interest on those assets.
What is Avalanche?
Avalanche is an open-source, proof-of-stake smart contracts platform that allows developers to build decentralized applications. Avalanche offers near-instant transaction finality and uses the native AVAX token to pay for gas and secure the network by staking.
A step-by-step guide on how to borrow assets on BenQi
- If your wallet is not on the Avalanche Network, a popup will prompt you to switch to the network. Click on “Switch to Avalanche” and sign it with your wallet.
- Once you switch to the Avalanche Network, you will see this page on BenQi.
Note: Before you can Borrow assets on BenQi, you have to deposit some collateral that you will be using to borrow against. The Pathfinder guide linked below will show you how to Lend assets on BenQi.
Once you’ve completed lending assets, you can follow the steps below to Borrow assets on BenQi.
Click on “Borrow”.
- Select the asset you would like to borrow. You can choose from AVAX, USDC.e, USDT.e, DAI.e, WBTC.e, WETH.e, and LINK.e.
- Enter the amount you would like to borrow. Make sure to pay attention to the health of your position after borrowing. If your borrow limit exceeds 100%, a portion of your collateral could be liquidated to repay your debt. You will also see this warning when you try to borrow more than 80% of your deposit.
- Click on “Borrow” and sign the transaction with your wallet to confirm it. This step requires you to pay for gas in AVAX
- Once the transaction is finalized, the assets you choose to borrow will be in your wallet. You will also see positions open under the “Borrowed” section like this.
Congratulations! You have now successfully borrowed assets on BenQi!