Benqi

Benqi receives a B- risk grade (28/100) from Hindenrank, where lower scores indicate lower risk. Lower risk — well-established Avalanche native with a clean record, but sAVAX leverage loops create hidden liquidation cascades during AVAX drawdowns The largest lending and liquid staking platform on the Avalanche blockchain, where you can earn interest on deposits or stake AVAX for the sAVAX token. It manages $300M in deposits with over 23 million AVAX staked. Its B grade reflects a mature Compound-fork design with no major exploits, offset by circular liquidation risks from using sAVAX as collateral in its own lending markets.

The key risks identified for Benqi are: (1) sAVAX can lose its peg to AVAX during a crash because unstaking takes 14 days. If you need to sell immediately, you take a discount, which triggers liquidations that push the price down further (2) People borrow AVAX against sAVAX, then stake it again for more sAVAX, creating leverage loops. When AVAX drops, these loops unwind all at once and the selling pressure cascades through every level (3) The top 25 holders control 96.4% of sAVAX. If a few large players decide to exit at the same time, the token's liquidity evaporates and retail holders are left with no buyers

Benqi scores 28/100 across eight risk dimensions: Mechanism Novelty: 0/15, Interaction Severity: 10/20, Oracle Surface: 2/10, Documentation Gaps: 2/10, Track Record: 0/15, Scale Exposure: 5/10, Regulatory Risk: 3/10, Vitality Risk: 6/10. The highest risk area is Vitality Risk at 6/10.

Among 90 rated Lending protocols on Hindenrank, Benqi ranks #5 by safety (lowest risk score = safest). Its 28/100 risk score and B- grade place it among the safer Lending protocols.

Benqi scores 0/15 on the Track Record risk dimension, indicating no significant exploits or security incidents in its history. However, past performance does not guarantee future security.