BENQI

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Overview ​

BENQI's liquid staking pool holds a large amount of AVAX that is reserved for earning protocol revenue via liquid staking. A key strategy for BENQI is distributing staked AVAX to trustworthy Avalanche validators.

This is done via Node Voting, which allows holders of BENQI Miles tokens, including validators themselves, to vote regarding how AVAX is delegated from BENQI’s Liquid Staking Pool. This increases decentralization and validator rewards.

INFO

As a reminder, BENQI Miles are earned by staking QI, with an accrual rate of 0.000003888888888 Miles per staked QI each second. So over the course of one day (86,400 seconds), a user would earn approximately 336 BENQI Miles for each staked QI.

Miles accrue gradually over time as users stake their QI (the Flex option), with full benefits accumulating after a specified period.

Delegation Pools ​

BENQI’s Liquid Staking operates with two distinct delegation pools:

Open Pool (65% of delegations) ​

For Avalanche validators who have staked at least 6,000 AVAX, have high-spec hardware and at least 15 days of uptime. The delegation fee is 2%, and delegations from this pool are allocated randomly to qualifying validators.

BENQI Miles Pool (35% of delegations) ​

For Avalanche validators who hold BENQI Miles (formerly veQI), have staked at least 2,000 AVAX and have at least 15 days of uptime. Validators may set their delegation fee between 2% and 5%.

Delegations from this pool are randomly distributed based on the validator's aggregate vote count of BENQI Miles. For example, if Validator A has 10,000 Miles votes and Validator B has 5,000, Validator A will receive twice the delegations.

In the past, Avalanche validators were randomly delegated stake from BENQI's liquid staking pool. Now, it's divided between the Open Pool (65%) and BENQI Miles Pool (35%).

Examples ​

  1. 2% delegation fee, no BENQI Miles vote power: delegations from the Open Pool.
  2. 2% delegation fee with BENQI Miles vote power: delegations from both the Open Pool and the BENQI Miles Pool.
  3. Between 2% and 5% delegation fee with BENQI Miles vote power: delegations exclusively from the BENQI Miles Pool, based on vote count.
  4. More than 5% delegation fee: not eligible for any delegations from BENQI Liquid Staking.