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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Lending

BENQI

# BENQI Token incentives Methodology

## 1. Overview

Benqi token incentives represents the total USD value of rewards distributed by the Benqi protocol on Avalanche to users for lending and staking activities. This metric captures both regular lending protocol incentives (distributed to borrowers and suppliers) and staking rewards, providing a comprehensive view of the protocol's token-based user incentivization program. The calculation aggregates daily incentive distributions across both QI and WAVAX tokens.

## 2. Data sources

- **Benqi protocol events**: Parsed `DistributedBorrowerReward` and `DistributedSupplierReward` events from the Benqi Comptroller contract on Avalanche, capturing when rewards are distributed to lending protocol users
- **Avalanche token transfer events**: Token transfer records filtered for QI token transfers originating from the Benqi staking contract (`0x784da19e61cf348a8c54547531795ecfee2affd1`)
- **End-of-day price feeds**: Daily closing prices for QI and WAVAX tokens used for USD conversion
- **Token metadata**: Decimal precision information for QI (`0x8729438eb15e2c8b576fcc6aecda6a148776c0f5`) and WAVAX (`0xb31f66aa3c1e785363f0875a1b74e27b85fd66c7`) tokens

## 3. Step-by-step calculation

### Component A: Lending protocol incentives
- **Purpose**: Extract token rewards distributed through the Benqi lending protocol
- **Logic**: Query parsed Benqi Comptroller events for both `DistributedBorrowerReward` and `DistributedSupplierReward` events. These events fire when the protocol distributes rewards to users for borrowing and supplying activities. The `tokenType` field indicates which token was distributed (0 for QI tokens, any other value for WAVAX tokens). Extract the reward amount from the `qiDelta` field and map the token type to the corresponding token contract address
- **Key fields**: `block_timestamp` for timing, `qiDelta` for reward amounts, `tokenType` for token identification, transaction and log identifiers for uniqueness

### Component B: Staking incentives  
- **Purpose**: Capture QI token rewards distributed through the staking mechanism
- **Logic**: Query Avalanche token transfer events specifically filtering for QI token transfers where the sender (`from_address`) is the Benqi staking contract address. These transfers represent staking rewards being distributed from the staking contract to users. Only QI tokens are distributed through staking, so the token address is fixed
- **Key fields**: `block_timestamp` for timing, `value` for transfer amounts, `from_address` for filtering staking contract transfers, `token_address` for QI token identification

### Final aggregation
- **Combining components**: Union the lending protocol incentives and staking incentives datasets using identical schema with daily timestamp truncation, chain identification (Avalanche), and business classification (all categorized as lending business line)
- **Currency conversion**: Convert token amounts to USD using end-of-day price feeds for the respective tokens (QI and WAVAX), applying decimal correction based on each token's precision (typically 18 decimals)
- **Time aggregation**: Aggregate incentives by day using timestamp truncation, summing all incentive distributions that occurred within each calendar day
- **Final calculation**: Sum the USD-converted daily incentive amounts across both QI and WAVAX tokens from both lending and staking sources, filling any missing dates with zero values to ensure continuous time series data

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

Value of native tokens distributed as incentives.

BENQIQI

Token incentives

Token incentives

Competitive landscape