BENQI x CIAN： Automation for improved sAVAX yield strategies

3 min readJun 2, 2022

Partnership

CIAN has strategically partnered with BENQI to collaborate on the advancement of sAVAX investment strategies, and liquidity market optimization & protection, hence increasing users’ capital efficiency while making the whole process further secure. This long-term multifaceted collaboration was primarily based on both parties’ growing interest in liquid staking. However, Cian’s tools will ultimately benefit BENQI’s users in multiple application scenarios.

Application scenarios

CIAN’s automation primitives were designed for multiple use cases. For instance, BENQI’s users will be able to:

Build & automate intricate sAVAX leveraged strategies.
Build complex multi-protocol ‘’borrow to farm’’ positions in 3 simple steps.
Protect their collateral assets with 2-level of protection.

Auto-Repay: Keep users’ collateral ratio to preset target through auto-rebalancing across his lending position & earning position(s).
Flash-Repay: In case of rapid collateral ratio rise, part of the collateral is sold via a Flashloan to return to the target collateral ratio, hence avoiding liquidation.

4. Auto-borrow: When the collateral ratio drops below the preset standard, CIAN will automatically borrow extra assets to return the loan to the target collateral ratio, and subsequently send the extra assets to users’ earning position(s).

5. Auto-compound users’ reward to increase their yield return.

Liquid Staking

The new concept of “Liquid Staking” has become one of the greatest alternatives for long-term investors. Liquid Staking allows investors who pledge to support proof-of-stake networks to gain the staking reward without sacrificing their exit flexibility and DeFi possibilities.

BENQI released the Liquid Staking (BLS) agreement in February of this year. Users can now stake AVAX to obtain BENQI’s staked AVAX token (sAVAX) and accrue interest through Avalanche staking rewards. sAVAX can then be used as collateral on lending protocols, or as an LP asset on farming protocols such as TraderJoe, Beefy, Kyber, etc…

In simple words, liquid staking (sAVAX) allows users to:

Solidify Avalanche network security;
Earn incentive from Avalanche via BLS;
Earn additional yield from any DeFi investment of their choice.

About Benqi

Built on Avalanche’s highly scalable network, BENQI’s vision of bridging decentralized finance (DeFi) and institutional networks starts by launching BENQI on the Avalanche C-Chain. BENQI’s suite of yield-generating DeFi products consists of the BENQI Liquidity Markets and BENQI Liquid Staking.

BENQI’s Liquidity Market allows users to earn interest on their supplied assets, and borrow any available asset from the platform in an overcollateralized manner.

BENQI’s Liquid Staking protocol is a liquid staking solution that tokenizes staked AVAX to grant users the ability to utilize the yield-bearing asset within Decentralized Finance applications.

About CIAN

CIAN — through large-scale integration and advanced automation, CIAN is defining a set of automation primitives, which turn complex manual execution of typical onchain tasks/strategies into a simple 3-step task definition process.

CIAN’s automation primitives allow end-users to increase their operational and capital efficiency over any integrated protocols based on their own strategies.

CIAN’s simplified ABI blocks & indexing services will allow developers to increase their learning cycle and integration process on top of any integrated protocols.