Benqi cuts $QI collateral factor to 20%

Benqi said on September 2 that it will reduce the collateral factor for the paused QI Core Market from 40% to 20% at 09:00 UTC on September 3, cutting the borrowing power of QI-backed positions in half. The protocol disclosed the change in a post on X and directed users to its markets app. Benqi’s documentation says a collateral factor determines how much a user can borrow against a deposited asset, with higher settings allowing more borrowing but increasing liquidation risk. The QI token is listed by Benqi as one of the assets available in its Core Markets. ### What exactly is changing for QI holders? The 20% figure means QI supplied to the paused Core Market will support less debt after the change takes effect. Benqi said the collateral factor will fall from 40% to 20%, and its protocol documentation gives a simple example: an asset with a 40% collateral factor allows $40 of borrowing against $100 of collateral. By that logic, a 20% setting would allow $20 against the same $100 of collateral. (x.com) A collateral factor is one of five key parameters that Benqi says its core team adjusts to maintain stability and liquidity across the platform. Benqi’s documentation says the parameter governs how much a user can borrow against a specific asset and that higher collateral factors also raise liquidation risk. (x.com) ### Why does a lower collateral factor matter if the market is paused? Benqi described the affected venue as the paused QI Core Market in its September 2 update. Even in a paused market, existing supplied collateral and borrowed balances can still matter for account health if users have open positions tied to that asset, because borrowing capacity is part of how collateralized lending positions are measured. (docs.benqi.fi) Benqi’s Core Markets documentation says deposited assets can be used as collateral to borrow other tokens, and it warns that when collateral ratios fall, users may need to repay part of a loan or add collateral to maintain a healthy position. The same documentation says a drop in collateral value or ratio can put a loan at risk of liquidation. (x.com) ### How does Benqi describe QI’s role inside the protocol? Benqi’s tokenomics documentation says QI is the native token of the Benqi ecosystem on Avalanche. The same documentation says QI can be used “for yield” including as collateral, alongside governance-related uses through BENQI Miles. Benqi’s contracts page lists the QI token contract and separately identifies qiQI among the Core Markets contracts. (docs.benqi.fi) Its Core Markets overview also names QI among the assets available in that market set, alongside AVAX, USDC, DAI and WBTC. ### What should users check before the change takes effect? The September 2 Benqi post told users to check positions on the protocol’s app before the new setting goes live. (docs.benqi.fi) Benqi’s getting-started documentation says the dashboard shows net worth, health factor, supplied assets and borrowed assets after a wallet is connected, which are the fields users would typically review when collateral terms change. (docs.benqi.fi) The health factor matters because Benqi says it reflects the safety of collateralized positions. Its documentation also says users should be cautious about the health of their loans and may need to repay debt or add collateral if ratios deteriorate. ### When does the new setting take effect? The effective time is 09:00 UTC on September 3, 2026, according to Benqi’s September 2 post. (x.com) Benqi linked users to its markets interface for position checks ahead of that deadline, and the protocol’s documentation says collateral settings are part of the risk controls used across Core Markets. (docs.benqi.fi)