BENQI is one of the most prominent lending protocols on Avalanche and has become the primary provider of liquid staking on the network.

It is a non-custodial liquidity market cryptocurrency. It allows users to borrow, lend and earn interest using its crypto. It aims to alleviate the problems facing the DeFi scenario as we know it today, namely high network fees and congestion.

The protocol works by allowing users to deposit their assets, which will be added to a pool that others can borrow from. Users who contribute liquidity to the protocol can earn passive income, while those who borrow can do so on an overcollateralised basis.

BENQI also aims to alleviate the overload on the Ethereum network by providing Ethereum users with a less expensive and faster alternative. BENQI members can withdraw liquidity from the shared liquidity market, borrow from the liquidity market and get a clear view of interest rates.

In BENQI supply transactions by token, the primary token is AVAX, totaling 696, followed by sAVAX with 399, and USDC with 307. Other tokens have remained relatively stable.

Examining BENQI borrow actions by token, USDC stands out significantly with 576 borrow actions. Generally, all tokens have experienced an increase. Looking at BENQI active suppliers by token, there has been a notable rise, especially in December. AVAX takes the lead with 257 active suppliers, followed by sAVAX with 213.

In BENQI active borrowers by token, USDC has seen a substantial increase with 193 active borrowers, followed by AVAX and USDt with 101 and 100 respectively. There is a clear upward trend, particularly compared to mid-November.

Analyzing Benqi supplied volume by token, the majority of the volume comes from USDC, amounting to 253M. In BENQI borrow volume by token, USDC is prominent with 34M, and USDt follows with 17M. This also reflects an increase compared to the previous month.

In the daily supply actions by period, a noticeable surge is observed, particularly in December. The supply transactions have escalated to 1.6k, borrow transactions nearly reached 1.4k, repay transactions totaled 968, and redeem transactions amounted to 1.3k. This upward trend is favorable, considering that these figures typically do not exceed 1k.

The daily active users exhibit a bullish trend across all actions. When one action experiences an increase, the users in other actions follow suit. Notably, the supply action now boasts 1k users. Examining the daily volume, there is a significant and favorable growth in December. The redeem volume stands at 42M, while the supply volume is slightly higher at 45M.

In the BENQI liquidity volume analysis for December, there is a noteworthy accumulation of liquidity that remains untouched. Over the last week, the total liquidity has reached an impressive 22M, indicating a remarkably high figure.

• Favorable surge in December, exceeding the norm with supply transactions at 1.6k, borrow transactions nearly 1.4k, repay transactions at 968, and redeem transactions reaching 1.3k.

• A consistent bullish trend across all actions, with a notable increase in supply users reaching 1k.

• Significant and favorable growth in December, particularly in redeem and supply volumes, standing at 42M and 45M respectively.

• Substantial accumulation of liquidity, reaching an impressive 22M during the last week of December.

• AVAX dominates with 696 transactions, followed by sAVAX at 399, and USDC at 307, while other tokens remain relatively stable.

• Noteworthy prominence of USDC with 576 borrow actions, and a general increase across all tokens.

• Significant rise in active suppliers, particularly in December, with AVAX leading at 257 and sAVAX at 213.

• Substantial increase in active borrowers, notably USDC at 193, followed by AVAX and USDt at 101 and 100 respectively, showing a clear upward trend from mid-November.

• Majority of volume from USDC, totaling 253M.

• USDC stands out with 34M, followed by USDt at 17M, indicating an increase compared to the previous month.

In this analysis we will focus on BENQI and Chaos Labs collaboration. More specifically, we will analyze the following data:

• Daily supply, borrow, repay, redeem actions by period.
• Daily active suppliers, borrowers, repayers and redeemers.
• Daily supply, borrow, repay, redeem volume by period.
• BENQI transactions, active wallets, volume and liquidity volume.
• BENQI active wallets, transactions and volume by token.

Credits to Alitslm for getting the contract addresses and some smart contract names!