Collateralization under stress
BENQI's assessment for RD-F-068 — scored yellow on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
Full stress simulation (top-3 collateral assets drop 50%) not performed — requires per-market collateral/borrow balance enumeration via on-chain RPC calls. Key structural risk identified: sAVAX is simultaneously a collateral asset AND a borrowable asset in qisAVAX, enabling recursive AVAX-sAVAX leveraged loops. A sharp AVAX price decline would correlate sAVAX secondary market price decline (even though the internal exchange rate only rises from staking rewards, DEX secondary market would depeg), potentially triggering cascading qisAVAX liquidations simultaneously. Aggregate utilization of 18.08% provides meaningful buffer. Close factor of 50% limits per-liquidation size. No bad-debt events in 57 months. Scored yellow due to the structural sAVAX-loop cascade risk and inability to perform the full simulation.
Sources #
- URLBENQI sAVAX recursive collateral loop descriptionMedium article describing sAVAX recursive borrowing loop on BENQI: stake AVAX → sAVAX → deposit as collateral → borrow AVAX → re-stakeretrieved 2026-05-16
- BENQI — Health & Liquidations documentationBENQI docs — health and liquidations; describes close factor (50%) and liquidation incentive (~10%) mechanicsretrieved 2026-05-16
Methodology #
Determine whether under curator-defined stress scenario (top-3 collateral assets drop 50%), protocol net collateralization falls below 110%.
See the full factor methodology and distribution across all protocols →