Lenders deposit funds into BENQI and receive interest payments from borrowers (supply-side fees).

BENQI is a non-custodial lending protocol built on Avalanche. BENQI was founded by an international team of software developers and launched in 2021.

 QI tokenholders own and govern the protocol. They currently take a cut of the total interest paid by borrowers (revenue). BENQI’s investors include Dragonfly Capital, Mechanism Capital, Spartan, etc.

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BENQI

# BENQI Fees Methodology

## 1. Overview

BENQI fees represents the total fees generated by BENQI's lending protocol on Avalanche, combining both protocol revenue and supply-side fees paid to liquidity providers. The metric captures all interest earned from lending activities and splits it according to the protocol's reserve factor mechanism, where a percentage goes to the protocol treasury and the remainder compensates liquidity suppliers.

## 2. Data sources

- **Avalanche blockchain events**: Parsed `AccrueInterest` events from BENQI v1 lending market contracts containing total interest amounts earned per market
- **Protocol configuration events**: Parsed `NewReserveFactor` events from BENQI v1 contracts tracking changes to the revenue split percentage over time
- **Token metadata**: Token symbols and decimal precision information for display and calculation accuracy
- **End-of-day price feeds**: Daily USD price data for converting token amounts to USD values
- **Market contract registry**: Hardcoded allowlist of valid BENQI lending market contract addresses and their corresponding underlying tokens, since BENQI markets were not factory-created

## 3. Step-by-step calculation

### Component A: Interest accrual extraction
- **Purpose**: Extracts raw interest amounts earned by each BENQI lending market
- **Logic**: Collects all `AccrueInterest` events from BENQI v1 lending markets on Avalanche. Each event contains the total interest accumulated for a specific market in a single transaction. Events are filtered to only include valid BENQI market contracts from the allowlist. The `interestAccumulated` field provides the raw interest amount in the market's underlying token units.
- **Key fields**: `interestAccumulated` (total interest earned), `address` (market contract), `block_timestamp` (when interest was accrued)

### Component B: Market metadata enrichment
- **Purpose**: Maps lending market contracts to their underlying tokens and adds metadata
- **Logic**: Joins interest accrual data with the BENQI markets allowlist to get underlying token addresses and symbols. The allowlist contains hardcoded mappings between market contract addresses (qTokens) and their underlying token addresses. Token metadata is then joined to get human-readable symbols and decimal precision information. Only markets present in the allowlist are included to ensure data quality.
- **Key fields**: `token_address` (underlying token), `token_symbol` (display name), `account_address` (market contract)

### Component C: Reserve factor application
- **Purpose**: Applies time-based reserve factors to split interest between protocol revenue and supply-side fees
- **Logic**: Joins interest accrual data with reserve factor events to determine the correct percentage split at the time interest was accrued. Reserve factors are tracked from `NewReserveFactor` events and normalized from mantissa format by dividing by 10^18. Uses temporal logic with lead timestamps to determine which reserve factor was active when each interest accrual occurred. If an accrual happened after a reserve factor was set but before the next change, that factor applies. Calculates protocol revenue as reserve factor multiplied by accrued interest, and supply-side fees as one minus reserve factor multiplied by accrued interest.
- **Key fields**: `new_reserve_factor` (protocol's percentage), `revenue` (protocol's share), `fees_supply_side` (suppliers' share)

### Final aggregation
- **Combining components**: Sums supply-side fees and protocol revenue to calculate total fees per market per transaction. The formula is: total fees = supply-side fees + protocol revenue = ((1 - reserve_factor) × accrued_interest) + (reserve_factor × accrued_interest) = accrued_interest
- **Currency conversion**: Applies decimal corrections based on each token's precision, then converts amounts to USD using end-of-day price feeds matched by date and token
- **Time aggregation**: Truncates timestamps to day boundaries and sums all fees within each day per market
- **Final calculation**: Aggregates daily total fees across all BENQI lending markets, fills missing days with zero values to maintain complete time series, and applies standard Token Terminal metric finalization including chain availability filtering

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value users pay to use a protocol (gross fees, user-paid fees).

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