Benqi and Vector: An Update to the xQI Partnership
We are excited to bring you the latest update on our xQi product on Vector!
A brief recap on what we currently offer: xQi is a derivative product that allows you to earn yield by staking Qi from Benqi Finance. Vector pools this Qi to accumulate veQi and therefore gains valuable voting power that can be used to delegate AVAX to validators.
As part of our strategy, we currently operate two validators, to which we delegate the voting power of the entire community. This allows us to earn delegation fees at a rate of 5%. We then distribute these fees back to our loyal xQi holders.
Now, let’s dive into the updates:
Amount of veQi, Delegation Power, and Revenue Generated
We are thrilled to share that the amount of Qi (and veQi) has been steadily increasing, thanks to the support and engagement of our amazing community. Amount of Qi and veQi accumulated: 19M xQi and close to 600M veQi and counting. That represents 4% of total veQi!
As Vector is the only place where you can earn yield from Qi, we believe this number can only grow.
Smart Converter’s New Functionality
Our users enjoy a simple, one-click experience and the smart converter functionality for xQi is no exception. For new users who didn’t know that xQi can be bought at a discount on the market, or aren’t familiar with our silky smooth UI-this update is for you. Come try it out! The smart converter also helps the ratio stabilization of Qi to xQi which is critical for a seamless experience. It directly buys xQi from the open market for our users who are trying to convert Qi into xQi, and stakes it for them, all in one transaction.
And finally, our most exciting update:
LVTX holders and their commitment to xQi
We have always seen VTX as being the foundation of trust on our platform: Stake with us and you will receive VTX, lock that VTX to show commitment, and you can earn yield through voting. But Vector is also about symbiosis between VTX holders and our other products.
Therefore, starting soon, a portion of the LVTX yield will be diverted to buyback xQi from the open market, and stake that xQi to generate yield in perpetuity for LVTX holders. We are thrilled to offer this new opportunity for our community to benefit from the xQi ecosystem and contribute to its long-term success! Percentages diverted to buybacks will be dynamic depending on the ratio, with all of our efforts concentrated around fortifying a healthy ecosystem for our users.
Keep an eye out for more updates on these developments! We are dedicated to providing you with the best xQi experience possible, and we appreciate your continued support and trust in Vector Finance.
About Vector Finance
Vector Finance is the number one yield booster on Avalanche. We’re building unique DeFi strategies for our users to earn more on their assets! Questions? Suggestions? Get involved in our amazing community of Vectorians:
