Avalanche-based lending and borrowing protocol BENQI, and KUU, a decentralized liquidity underwriter for the Avalanche DeFi ecosystem, have announced a partnership to support BENQI’s on-chain liquidations. Additionally, KUU will be putting its under-utilized assets into BENQI to receive yield and maximize profitability.
KUU provides reinforcing liquidity by offering flash loans using pooled liquidity on the protocol. Its name is derived from “Kuutar,” who is the Goddess of the moon in Finnish mythology.
The decentralized liquidity underwriter allows on-chain keepers to efficiently capture on-chain profits and arbitrage opportunities through lending and borrowing market liquidations.
In the event of a market-wide flash crash, BENQI would require a large amount of capital to liquidate the under-collateralized loans. Instant access to KUU’s liquidity pools via flash loans will ensure the maintenance of liquidations, strengthening the BENQI protocol’s safety and market efficiency.
“We are very excited for our partnership with BENQI, and believe that together we can help accelerate DeFi activity on Avalanche. There will be a flash-loan fee for accessing the KUU liquidity pool, the majority of which will be directed towards the liquidity providers and the KUU Treasury. Further, through KUU’s own internal bot, contributors to the KUU liquidity pool are able to take part in on-chain activities without running their own infrastructure, lowering the barrier of entry.”
said KUU co-founder Tommy Ngo.
KUU is a decentralized protocol designed to provide reinforcing liquidity to on-chain keepers to maximize on-chain profit through liquidations, DEX arbitrage and other on-chain opportunities. As a communal pool, KUU enables users to pool capital into smart contracts to collectively profit from on-chain arbitrage and liquidation opportunities. Capital staked in these pools is used to extract on-chain profit opportunities presented by any DeFi protocol on Avalanche.
Built on Avalanche’s highly scalable network, BENQI is an algorithmic lending and borrowing protocol. Through BENQI, Avalanche users will be able to earn interest on their assets, obtain credit through over-collateralized loans and earn QI governance tokens as rewards for providing liquidity on the protocol and Pangolin. For more information about BENQI, please visit: benqi.fi