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Ignite the Subnets: How Benqi powers hundreds of Avalanche validators with Chainstack

Our collaboration with Chainstack marks a pivotal step in enhancing the Avalanche ecosystem, offering a seamless experience for deploying Subnets. By simplifying complexities, we’re building bridges for developers to bring their ideas to life.

Dan Mgbor, Co-Founder, Benqi

At Chainstack, our mission has always been to streamline the complexities of blockchain technology, making it more accessible and efficient for our partners. In this spirit, our collaboration with Benqi stands as a testament to our shared vision of fostering innovation within the Avalanche ecosystem.

Whether it’s about effortless decentralized lending, easy crypto borrowing, or launching Avalanche validators and Subnets, Benqi has provided an accessible platform for professionals in every corner of Web3. However, the complexity of such processes and the technical challenges they pose have always been a concern. And that’s where Chainstack came into play.

How Benqi started with Chainstack

From the get-go, Benqi saw Chainstack as more than just a service provider. Instead, Benqi viewed us as a proactive partner, perfectly equipped to support their endeavors. Benqi needed our services, but more so our expertise to simplify the technicalities of spinning up validators for their clients’ Avalanche Subnets.

This feature was instrumental in their decision to adopt Chainstack, as it provided the perfect solution to their Ignite product’s integration needs. Our commitment to flexibility, reliability, and offering a seamless user experience further fostered their conviction.

Taking full advantage of our services, Benqi reduced the traction of funding validators, deploying Subnets effortlessly, and relying on our infrastructure for total customer satisfaction. Chainstack enabled Ignite to back countless validators, hinting at an even brighter future.

Benqi on Chainstack in numbers

Our partnership with Benqi through their Ignite program has been pivotal in addressing the high costs associated with deploying Avalanche Subnets. Traditionally, the requirement to stake 16,000 AVAX presented a significant financial hurdle, limiting accessibility for many potential participants. However, our collaboration has led to a groundbreaking solution that democratizes access to the Avalanche ecosystem.

Through the Ignite program, we have facilitated the launch of hundreds of Avalanche validators, a testament to our joint commitment to fostering growth and inclusivity within the blockchain ecosystem. This initiative not only supports developers by offering staking rental for validators, eliminating the need for substantial upfront capital but also enhances the operational efficiency and communication among participants.

Figure 1: Benqi Ignite validator funding mechanism; Source: Benqi

By streamlining the process of spinning up validators for Avalanche Subnets, Chainstack has removed operational friction and ensured the reliability of these critical network components. This reliability is essential for maintaining the performance of the Avalanche Subnets and for the success of decentralized applications built on them.

The broad and stable set of validators we’ve helped establish through the Ignite program opens up new avenues for the development of robust, decentralized applications, leading to a richer and more adaptable Avalanche ecosystem. As a chosen partner, we’re proud to provide Benqi—and by extension, their users—with a platform that is not only more accessible but also reliable, scalable, and efficient.

In summary, our successful collaboration with Benqi reflects a shared vision for a more inclusive and democratized blockchain infrastructure. By reducing the financial and operational barriers to entry, we are enabling a wider range of developers to innovate and build on the Avalanche network, thereby contributing to the ecosystem’s growth and diversity.

What is Benqi?

Benqi is a game-changer in the Avalanche space. As an all-encompassing suite of protocols, Benqi is providing an array of services to its 100,000+ users, redefining the way digital asset interactions take place.

Investing in digital assets with Benqi means facing a treasure trove of options. With over $858M worth of value locked and counting, Benqi offers three primary services: Liquid Staking, Markets, and Ignite.

Benqi Markets, a central feature of the suite, empowers users to lend, borrow and earn interest effortlessly with their digital assets. It operates under a permissionless framework and offers a transparent view of interest rates around the clock, driven by real-time market supply and demand. The result? A feature for users to supply and withdraw liquidity instantaneously and borrow from the liquidity market with their existing assets as collateral.

Taking it a step further, Benqi Liquid Staking breaks new ground over traditional staking methods. It provides an Avalanche liquid staking option that tokenizes staked AVAX. This tokenization allows users to fully utilize their yield-bearing assets within various DeFi applications, providing unmatched utility and flexibility.

Figure 2: Benqi Liquid Staking workflow; Source: Benqi

Finally, Benqi’s innovative Ignite program enables builders to launch Avalanche Subnets, by creating opportunities for validator stake rentals. This initiative paves the way for a more affordable and accessible approach compared to the traditionally costly procedures, thus democratizing the horizons for Web3 developers and innovators eager to explore the potentials of L2 appchain technology in the ecosystem.

Working with Benqi has been a powerful example of how strategic collaborations accelerate growth. Together we’ve made it easier for Web3 developers to deploy their own Avalanche Subnets, paving the way for a more vibrant and inclusive future one subnet at a time.

Eugene Aseev, CTO & Co-founder, Chainstack

Bringing it all together

At Chainstack, we champion the ambitions of our clients, and Benqi is no exception. By providing the team with a comprehensive solution to their friction points, notably by facilitating the launching of Avalanche validators, we empowered them to reach their full potential and garner success in the digital asset market.

Our partnership with Benqi isn’t just built on a shared vision for the future of Web3—it’s fueled by the common ambition to remove barriers to blockchain adoption. With Benqi’s impressive suite of services and Chainstack’s robust infrastructure, we’re providing optimal solutions to address the needs of Web3 developers and institutions alike.

The Benqi case is a testament to what we can accomplish when we combine innovative products, dedicated support, and powerful infrastructure for a more open, efficient, and user-friendly Web3. Our journey with Benqi is the epitome of our commitment to enable scalable and accessible solutions.

As we look to the future, our collaboration stands as a beacon of progress, continuously striving to lower barriers and empower the next generation of blockchain innovators. Through our continued efforts, we are excited to nurture and witness the growth of a more inclusive, efficient, and vibrant Avalanche landscape.

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