What is Benqi (QI) And Why Is It Rallying?

What is Benqi?

NOIDA (CoinChapter.com) — BENQI, a DeFi platform on Avalanche, recorded an impressive rally, rising over 81% week-to-day to reach a daily high near $0.029 on Feb. 28. Moreover, the token has more gains lined up if bulls manage to stay above a key support level.

After the recent rally, bears started booking profits on Feb. 28, resulting in the BENQI token price dropping nearly 25% before bulls repaired some of the damage.

BENQI price
QIUSD daily price chart with RSI. Source: Tradingview.com

If QI price remains above the support near the 0.5 fib level, the token stands a good chance of breaking past the 0.618 fib retracement level to challenge the resistance near $0.031, netting gains of over 30% from current levels.

However, if the sell-off continues, BENQI price could drop to the 0.382 fib retracement level support near $0.02, testing the multi-month ascending trendline support. A break below the trendline support might introduce panic into the market, forcing QI price to drop to the support near $0.0165.

The RSI for QI remained neutral, back from its sojourn in the overbought region on Feb. 27, with a score of 66.83 on the daily charts.

Moreover, analyst Jason Marks claimed the BENQI token might be lined up for a 1,300% breakout from its current levels following a “holding breakout.”

A New Partnership

Meanwhile, BENQI announced a partnership with the Crypto Investor Automation Network. The partnership centers around deploying CIAN’s automation capabilities to enhance yield opportunities on Benqi, particularly in relation to its liquid staking.

BENQI price
BENQI and CIAN announced a partnership

CIAN’s automation tools streamline processes like auto-compounding, where rewards earned within BENQI are automatically reinvested to maximize yields over time. Additionally, CIAN can implement delta-neutral strategies on BENQI.

However, one key integration would be CIAN’s automation of recursive AVAX staking. The strategy involves taking staking rewards earned on BENQI and reinvesting them back into the AVAX stake, effectively growing the underlying staked asset.

What Is BENQI?

BENQI is a decentralized finance (DeFi) platform built on the Avalanche blockchain. It provides a set of protocols for users to engage in various financial activities such as lending, borrowing, and earning interest on digital assets.

The platform has three key components, BENQI Markets, BENQI Liquid Staking, and Ignite.

BENQI Markets allows users to lend their cryptocurrencies to earn interest or borrow against their holdings in a decentralized manner. Moreover, the feature facilitates the creation of a liquidity pool that supports the platform’s lending and borrowing ecosystem.

The liquid staking feature allows users to stake Avalanche’s native token, AVAX, and receive a liquid token, veQI, in return. This process enables users to participate in network security while maintaining the liquidity of their staked assets.

Ignite makes it easier for users to become validators by simplifying their network security and consensus participation.

The protocol’s native token, QI, has a total supply of 7.2 billion tokens.

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