veQi coming soon from Benqi

Benqi has recently released liquid staking. They already have over 750k Avax staked.
In conjunction of liquid staking they plan to implement veQi (Discord).

As per discord chat, it will be usable for directing Qi emissions and liquid staking rewards emissions.
Soon they plan to implement governance as well. I would like to set up a Qi treasury for Defrost so that the DAO may propose the following changes in Benqi:

  • add H2O as an asset in their platform.
  • direct qi emissions and Avax emissions towards H20 staked in benqi.

If implemented this change can help both Defrost and Benqi, reasons why:
Defrost:

  • incentivizes users to hold H20 in Benqi platform instead of swapping it for stables
  • adds another use case for H20
  • helps to “lock in” collateral in Defrost
  • makes it easier to obtain H20 to liquidate collateral that falls below the minimum ratio

Benqi:

  • Users would be able to borrow H20
  • the minting of H20 involves Benqi staked assets, this encourages users to deposit more collateral in Benqi which can be loaned out and translates into more fees for Benqi.

Instead of selling Qi rewards I would like for us to accumulate those Qi rewards.

Benqi is currently trading at 18.81x times P/E. Token terminal says they have only 1.18B in locked assets, but it is actually 2.5B in supply and 1.39B in borrows.
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The Benqi team is very close to Avalabs. They are a key player in the Avalanche ecosystem and will likely continue to be. For us to make H20 Avalanche’s default stable coin I believe that securing a seat in Benqi’s governance table is fundamentally a good move.

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