Benqi Lending
Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.
BENQI Markets combines a cross-collateral core market with isolated Avalanche ecosystem markets. DefiLlama’s top-level snapshot recorded about $84.1M on 2026-08-14, below the $100M materiality line. Avalanche is approved with limits, but size decides before a client-ready stablecoin market and its withdrawable cash receive address-level review.
- TVL sustained above $100M for 30 days
The research file
Mechanism
Suppliers fund pooled markets and earn utilization-driven interest; borrowers pledge excess collateral. Core assets share a Comptroller risk domain, while ecosystem markets isolate long-tail collateral and generally permit only USDC borrowing. qiToken redemption depends on cash remaining in the relevant pool.
Control and operating evidence
The BENQI core team currently adjusts collateral, reserve, close-factor, liquidation-incentive and interest-rate parameters while describing future decentralization. Chaos Labs supplies risk work, a dual Chaos/Chainlink oracle design is published, and BENQI lists audits from Halborn, Certora and others. These are controls, not a market-specific approval.
Exit consequences
High utilization can leave insufficient pool cash for suppliers even when accounting value remains intact. Oracle error, depeg, bridge exposure and failed liquidation can create bad debt. Borrowers must repay or add collateral when health falls below thresholds; third-party liquidators can seize collateral with an incentive.
Why the class rule decides
The reproducible top-level snapshot remains below the size floor; summing currentChainTvls can double-count market components and does not prove thirty days above $100M. Size therefore decides. Review reopens after sustained scale for a named USDC market with utilization stress, collateral and oracle mapping, admin authorities, bad-debt history and address-specific exit analysis.
Sources
The claims above trace to these. Where a number could not be independently verified, the thesis says so.
- BENQI Docs — market structure · primary · accessed 2026-08-14
Supports: core markets, isolated markets, USDC borrowing, risk domains - BENQI Docs — protocol parameters · primary · accessed 2026-08-14
Supports: team control, collateral factor, reserve factor, utilization rates - BENQI Docs — health and liquidation · primary · accessed 2026-08-14
Supports: health threshold, close factor, liquidation incentive - BENQI Docs — risks and audits · primary · accessed 2026-08-14
Supports: audit record, smart-contract risk, liquidation risk, Chaos Labs - DefiLlama — BENQI Lending survey record · secondary · accessed 2026-08-14
Supports: survey TVL, Avalanche deployment, lending category
Inherited controls
The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.
| Chain | Verdict | Grade | Control constraint |
|---|---|---|---|
| Avalanche | Approved · limits | crypto-backed | no party can freeze or seize C-Chain funds, but one vendor writes the only production client and Messari measured over a third of stake hosted on AWS. |