How To Lend & Borrow on BenQi
To position Islander as a learn-to-earn & affiliate marketing platform promoting crypto adoption, Islander is not only a place where retail investors can find and learn from potential projects but also provides informative news. Currently, our primary goal is to serve as a springboard for the top initiatives in the Avalanche ecosystem. So, with this “Avalanche How-to” series, we will provide you with the fundamentals of this potential ecosystem.
We have introduced to you a way to get passive income by staking on Trader Joe in the last article. However, there’s more one way to make a profit when holding a token. So, the next post in our “Avalanche How To’’ series is about Lending and Borrowing Assets on BenQi.
First of all, what is BenQi?
BenQi is the Avalanche network’s largest lending and borrowing protocol. BenQi allows users to lend, borrow, and earn interest on their digital assets with ease. Depositors who provide liquidity to the protocol might receive passive income, while borrowers could borrow with in an over-collateralized manner.
So, how to lend on BenQi?
Please follow these steps:
- Click on the MARKETS tab on the menu and click on "Supply"
- Select the type of asset from the drop box menu in the "Supply" dashboard
- Enter the desired amount to deposit and click "Deposit"
- Once the transaction is confirmed, the deposit is successfully registered and it starts earning interest.
- QiTokens will be deposited into your wallet as a representation of your supplied asset into the protocol.
There are no minimum or maximum deposits imposed. Users can deposit any amount.
Remember, the APY when you lend is lower than farming or staking. But, you can borrow tokens from the protocol when you need it. Follow these steps:
- Click on the MARKETS tab on the menu and click on “Borrow”
2. Select the type of asset from the drop box menu in the “Borrow” dashboard
3. Enter the desired amount to borrow and click “Borrow”
4. Once the transaction is confirmed, the loan is successful and it starts accruing payable interest.
If you need any amount of money, but you don’t want to sell your tokens because you have just bought them at a good price. Then, lending and borrowing are suitable for your case.
We hope you’ll find this article useful. And don’t forget to join our Islander team here https://t.me/islanderofficial to discuss all the exciting news about the crypto world!