Aave and Benqi are the two lending protocols Wyro connects to on Avalanche. At the core they work the same way: you supply tokens to a shared pool and earn a variable rate, and you can borrow against what you supplied while your position stays healthy. They differ in which assets they list, how they handle AVAX, how they set borrow limits, and what else they run. Neither is better in general. The comparison that matters is the live rate, liquidity, and limits for the one asset you plan to use.
Aave vs Benqi at a glance
| Aave V3 | Benqi | |
|---|---|---|
| Where it runs | Many networks; Avalanche is one market | Built on Avalanche |
| Receipt for a deposit | aToken | qiToken (e.g. qiAVAX, qiUSDC) |
| AVAX | Held as WAVAX (wrapped AVAX) | Native AVAX in the qiAVAX market |
| Rates | Variable, driven by utilization | Variable, set by supply and demand |
| Borrow limit | Max LTV and liquidation threshold per asset | Collateral factor per asset |
| Extras | E-Mode for correlated assets | Ecosystem Markets, sAVAX liquid staking |
How pooled lending works on both
Suppliers deposit into a pool for each asset. Borrowers post collateral worth more than they take out and pay interest, which suppliers earn minus a protocol share.
Rates move with utilization. Aave defines utilization as the share of a pool that is borrowed (Aave glossary). As it rises, both borrow and supply rates rise. Benqi sets its rates algorithmically from each market's supply and demand (Benqi Core Markets). Today's rate is not a promise for next week.
Withdrawals depend on liquidity. If most of a pool is borrowed, there may not be enough left for every supplier to withdraw at once until borrowers repay or new deposits arrive. A very high supply rate is often a sign of exactly that.
Aave on Avalanche
Wyro connects to Aave's V3 market on Avalanche. When you supply, you receive aTokens that track your deposit plus interest.
- Assets. Aave said in July 2026 that its V3 Avalanche market supports 18 assets (Aave blog), including WAVAX, sAVAX, BTC.b, WETH.e, USDC, USDt, EURC, and GHO. Some can be frozen or capped, so check the live market.
- AVAX is WAVAX. Aave's pool holds the ERC-20 wrapped version of AVAX, so in Wyro you supply WAVAX to Aave, not native AVAX.
- Borrow limits. Each asset has a max LTV (how much of its value you can borrow) and a higher liquidation threshold, both set by Aave governance. E-Mode gives more borrowing power when collateral and debt are correlated, such as two stablecoins.
- Aave V4. Aave launched V4 on Avalanche on July 15, 2026, with separate markets. Wyro's Earn and Borrow use V3. You can open other Aave markets through the dapp browser in Explore.
Benqi on Avalanche
Benqi is built on Avalanche and runs two kinds of lending market (Benqi Markets overview):
- Core Markets for liquid assets such as AVAX and USDC. You can borrow any available asset against your deposits.
- Avalanche Ecosystem Markets for long-tail assets and real-world assets, each with isolated risk settings. Against these, you can only borrow USDC.
When you supply to a Core Market you receive a qiToken. Each asset has a collateral factor, the share of its value you can borrow against (Benqi protocol parameters).
AVAX is native. The qiAVAX market takes AVAX directly. In Wyro, that means no wrapping and no token approval when you supply AVAX to Benqi.
sAVAX is a separate Benqi product
Benqi also runs liquid staking: you stake AVAX and receive sAVAX, whose value in AVAX grows as rewards accrue, and which you can use as collateral on Benqi or Aave. Unstaking through Benqi takes a 15-day wait plus a 2-day claim window (Benqi docs); selling sAVAX on the market is faster but can be below its underlying value. sAVAX isn't a Wyro feature. Wyro's Stake tab delegates AVAX natively on the P-Chain (how to stake AVAX).
Liquidation on each
| Aave V3 | Benqi | |
|---|---|---|
| Trigger | Health factor below 1 | Health below 1 |
| How much per liquidation | Up to 50% of debt; up to 100% at health factor 0.95 or lower, or when collateral or debt is under $2,000 | Capped by a close factor (50% in Benqi's docs) |
| Liquidator's reward | A liquidation bonus, set per asset | A liquidation incentive, "usually 10%" |
| Source | Aave help | Benqi docs |
The result is the same on both: the liquidator repays part of your debt and takes collateral worth more than that, with the bonus coming out of your collateral. Aave's help center notes there is no universally safe health factor. Our guide to borrowing against AVAX walks through the numbers and how to keep a buffer.
How to choose
- Compare the live rate for the exact asset. One protocol may pay more on USDC this week and less next week.
- Check utilization and liquidity. A high supply rate on a nearly fully borrowed market can mean a slow exit.
- Check limits for your collateral. The same token can have a different max LTV or collateral factor on each protocol.
- Check the exact token. Native USDC and bridged USDC.e are separate markets (USDC vs USDC.e).
- Think about AVAX. If you don't want to wrap it, Benqi takes native AVAX.
Comparing and using both in Wyro
Wyro is an interface. It doesn't lend, hold funds, or set rates, and every deposit goes from your wallet to the protocol.
Supply in Earn
- Open Trade → Earn. Markets are grouped into Native Staking, Stablecoins, and Other assets.
- Pick a token. Its page lists the Lending Pools for that token, labeled Aave or Benqi with the current rate, so you can compare them side by side.
- Choose a pool, open Supply, and enter an amount. Keep a little AVAX for gas.
- Review and sign. Any token approval is for the amount you supply, and Wyro's Tenderly simulation shows the expected balance changes first (how simulation works). The position then appears under Your Deposits, with an earnings chart.
To withdraw, open the position from Your Deposits and tap Withdraw. If the deposit is collateral for an open borrow on that protocol, Withdraw is locked in Earn. Repay first, or reduce collateral from the Borrow tab.
If you hold AVAX and don't need it liquid, the Native Staking category is the other option in Earn: delegate at least 25 AVAX on the P-Chain for 14 days to a year. There's no liquidation risk, but the stake is locked until its end date.
Borrow
In Trade → Borrow, you choose Aave or Benqi, pick what to borrow, then pick collateral. The collateral step shows each asset's Max LTV, Liquidation Threshold, and Liquidation Penalty on that protocol, which is a quick way to compare the two. The full flow is in the borrowing guide.
Risks both share
- Smart-contract risk. Bugs or exploits can cause losses, even in audited code.
- Variable rates. Supply rates can fall and borrow rates can rise without notice.
- Liquidity risk. You may not be able to withdraw when a market is heavily borrowed.
- Liquidation risk. If you borrow, a price drop or growing interest can push your position below 1.
- Oracle, governance, and price risk. Price feeds and parameter changes affect your position, and earning a rate doesn't protect you from the token's price falling.
Borrowing is provided by the Aave and Benqi smart contracts. Wyro doesn't lend or hold your funds, and it doesn't guarantee returns. Only supply or borrow what you can afford to have at risk.
FAQ
Is Aave or Benqi better on Avalanche?
Neither is better for everyone. Both are pooled lending protocols with variable rates. Compare the live rate, liquidity, and borrow limits for the asset you use.
Can I supply AVAX on Aave?
Aave's Avalanche market holds WAVAX, the wrapped version of AVAX, so in Wyro you supply WAVAX to Aave. Benqi's qiAVAX market takes native AVAX.
When do I get liquidated on Aave or Benqi?
On both, when your health value falls below 1, because your collateral lost value or your debt grew. A liquidator then repays part of your debt and takes collateral plus a bonus.
Can I withdraw from Aave or Benqi at any time?
Usually, as long as the market has enough unborrowed liquidity and the deposit isn't backing a borrow. When a market is heavily borrowed, you may have to wait for repayments or new deposits.
Is sAVAX the same as staking AVAX in Wyro?
No. sAVAX is Benqi's liquid staking token. Wyro's Stake tab delegates AVAX natively on the P-Chain, where your AVAX is locked until the end date you choose.
