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 Revenue Methodology

## 1. Overview

BENQI revenue represents the protocol's share of interest earned from lending activities on the Avalanche blockchain. The metric answers: "How much revenue does the BENQI protocol earn from its lending markets?" The calculation extracts interest accrual events from BENQI smart contracts and applies time-varying reserve factors to determine the protocol's revenue share versus the portion distributed to liquidity providers.

## 2. Data sources

The methodology relies on several key data sources:

- **BENQI smart contract events**: Parsed `AccrueInterest` events emitted by BENQI lending market contracts on Avalanche, containing the total interest accumulated in each market
- **Governance events**: `NewReserveFactor` events that track changes to the protocol's revenue share percentage over time
- **Token metadata**: Token symbol and decimal information for proper amount calculations and display
- **End-of-day price feeds**: Token price data for USD conversion of revenue amounts
- **Market configuration**: Hardcoded allowlist mapping BENQI market contract addresses to their underlying token addresses

## 3. Step-by-step calculation

### Component A: Interest accrual extraction
- **Purpose**: Captures raw interest accumulation from all BENQI lending markets
- **Logic**: Extracts all `AccrueInterest` events emitted by BENQI market contracts on Avalanche. Each event contains the `interestAccumulated` field representing total interest added to borrower debt in that market at that block. Events are classified as lending business line with version v1 metadata.
- **Key fields**: `interestAccumulated` (raw interest amount), `address` (market contract), `block_timestamp`

### Component B: Market context mapping  
- **Purpose**: Maps market contract addresses to underlying token information
- **Logic**: Uses a hardcoded allowlist of 12 BENQI markets covering major tokens like WAVAX, sAVAX, WBTC.e, USDC.e, and others. Each market contract address is mapped to its underlying token address to enable proper token identification and decimal handling.
- **Key fields**: `account_address` (market contract), `token_address` (underlying token), `token_symbol`

### Component C: Reserve factor application
- **Purpose**: Determines the protocol's revenue share percentage at the time of each interest accrual
- **Logic**: Extracts `NewReserveFactor` events that change the protocol's revenue share over time. Reserve factors are stored in wei format (18 decimals) and converted to decimal percentages. Time-based windowing logic ensures the correct reserve factor is applied to each interest accrual based on when it occurred relative to factor change events.
- **Key fields**: `newReserveFactorMantissa` (converted to decimal), `block_timestamp` (for time-based matching)

### Component D: Revenue calculation
- **Purpose**: Calculates the actual protocol revenue from each interest accrual event  
- **Logic**: Joins interest accruals with market context and time-appropriate reserve factors. Token amounts are corrected for decimal places using token metadata. Revenue is calculated as the accrued interest multiplied by the reserve factor active at that time. The remaining portion (1 - reserve factor) represents supply-side fees paid to liquidity providers.
- **Key fields**: `accrued_interest` (decimal-corrected), `new_reserve_factor` (as percentage), `revenue` (calculated amount)

### Final aggregation
- **Combining components**: Revenue amounts from all markets and time periods are aggregated by truncating timestamps to daily boundaries
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds matched to the date of each revenue event
- **Time aggregation**: Daily aggregation ensures consistent time boundaries across different markets and tokens
- **Final calculation**: The final revenue metric represents the sum of all protocol revenue earned across BENQI lending markets, expressed in USD per day

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

BENQIQI

Revenue

Revenue

Competitive landscape