Benqi vs Fyn (formerly BearTax)

Benqi operates two foundational product lines natively on Avalanche: Benqi Liquid Staking (BLS) and the Benqi Liquidity Market (BLM). Through the liquid staking interface, participants deposit native AVAX into staking contracts to mint sAVAX. The sAVAX token automatically accumulates validator staking rewards by appreciating in value relative to AVAX over time, removing the need for manual reward claims while allowing holders to transfer, trade, or collateralize their staked balance across external decentralized finance protocols.

Alongside liquid staking, Benqi provides non-custodial money markets patterned after algorithmic pool structures. Users supply assets such as AVAX, sAVAX, wrapped Bitcoin, wrapped Ethereum, and leading stablecoins including USDC and USDT to earn variable interest funded by borrowers. Suppliers receive interest-bearing qiTokens representing their proportional share of the underlying liquidity pool. Borrowers can then draw overcollateralized loans against their supplied collateral balance, paying floating interest rates determined mathematically by supply and demand utilization curves within each individual asset reserve.

Fyn functions as a non custodial tax reporting suite and institutional digital asset accounting platform. The system operates by processing read only transaction data across hundreds of digital assets, fiat pairs, and cross chain protocols. Users connect their centralized exchange accounts via read only API keys or upload historical trade histories using standard CSV files. The platform also reads public wallet addresses directly across networks including Bitcoin, Ethereum, and major layer two ecosystems.

Once transaction histories are imported, Fyn applies standardized cost basis accounting methodologies such as first in first out, last in first out, and highest in first out. The software identifies internal transfers between user owned accounts to avoid triggering accidental taxable events. For businesses and decentralized organizations, Fyn extends beyond personal capital gains reporting by supporting double entry bookkeeping, chart of accounts customization, and enterprise resource planning software synchronization. Complex decentralized finance actions, including liquidity pool provisioning and wrapped token staking, are ingested into the dashboard for user verification and cost basis assignment.

Engaging with Benqi involves several distinct protocol-level and network-level costs rather than traditional commercial account fees. On the liquid staking side, Benqi applies a protocol fee deducted directly from incoming validator staking rewards prior to distribution, funding protocol development and reserve management. When minting sAVAX or redeeming back to AVAX, transactions incur Avalanche C-Chain network gas fees settled in AVAX, which fluctuate based on prevailing blockchain congestion levels.

In the Benqi Liquidity Market, suppliers and borrowers encounter variable interest rate models. Borrowers pay annualized interest rates that escalate as pool utilization rises, while a reserve factor percentage is directed to protocol reserves. Unstaking sAVAX through the native redemption queue involves an unbonding period dictated by Avalanche network consensus validation cycles. Alternatively, users requiring immediate liquidity can trade sAVAX for AVAX on decentralized exchanges, though this route exposes traders to market spreads, liquidity pool depth limits, and decentralized exchange swap fees.

Fyn structures its commercial pricing around annual subscription tiers based on the total number of transactions processed within a specific tax year. Unlike trading venues or payment brokers, the software does not take spreads, handle user funds, or assess withdrawal fees. Instead, costs are determined entirely by the operational scale of the user portfolio and the depth of reporting functionality required.

Basic consumer plans cater to casual investors with limited annual transaction counts, unlocking standard Form 8949 generation and basic audit logs. Higher tier individual plans expand transaction caps to accommodate high frequency trading, automated bot activity, and extensive decentralized exchange operations. For corporate clients, Web3 startups, and accounting firms, Fyn provides specialized enterprise licenses. These business packages incorporate advanced ledger integrations, multi entity support, team access controls, and custom data mapping tools. Users should assess their lifetime trade frequency before selecting a plan, as exceeding a tier threshold requires an account upgrade to generate final reports.

Benqi operates on a fully non-custodial framework where users retain direct ownership of their private keys throughout every interaction. Connecting to the protocol occurs via self-custody Web3 wallets such as Core, MetaMask, or hardware-linked wallet software. Assets deposited into the money market or liquid staking contracts are governed entirely by programmatic code on the Avalanche C-Chain, meaning no centralized custodian or corporate entity holds administrative custody over user balances.

Protocol security relies on automated smart contracts, multi-signature governance frameworks, and third-party security audits conducted by external blockchain security firms. Price feeds for lending valuations and liquidation calculations are supplied by decentralized oracle networks such as Chainlink. Users must actively manage their health factor metrics within the interface, as collateral balances are subject to automated partial liquidation by independent keeper bots if market price swings push account health below required collateralization thresholds.

Because Fyn operates purely as an analytics and tax calculation service, it never takes custody of digital asset balances or manages private keys. Security parameters center entirely on protecting imported financial records and establishing strict external access permissions. Centralized exchange connections require read only API credentials, directing account holders to disable withdrawal, transfer, and trading permissions during key setup. This architectural boundary prevents the software from initiating unauthorized transactions or affecting external exchange account balances. Read only ingestion is intended to support that account data access remains purely diagnostic and administrative throughout the reporting period.

Data transmissions between client browsers, external blockchain nodes, and processing servers rely on standard transport layer security encryption protocols. Stored financial records, API secrets, and generated tax schedules reside within encrypted cloud database environments protected by continuous perimeter monitoring. User profiles incorporate multi factor authentication controls to prevent unauthorized access to sensitive financial summaries and tax identification numbers. The platform parses public blockchain ledger histories directly without requesting smart contract write permissions or seed phrases, which eliminates smart contract wallet draining risks. Internal access policies restrict data handling strictly to authenticated calculation processes, maintaining clear administrative barriers across all user data sets.

Because Benqi is deployed as permissionless smart contracts on the public Avalanche blockchain, the underlying protocol is accessible globally to anyone with an internet connection, a compatible Web3 wallet, and network gas tokens. The decentralized nature of the application removes traditional banking onboarding hurdles, credit checks, and identity verification requirements. However, regulatory restrictions may apply to front-end hosted interfaces in specific geographic regions, leading some users to interact through alternative nodes or decentralized front-ends.

Governance of protocol parameters, supported collateral tiers, and reserve factors is driven through the native QI governance token and community snapshot votes. Customer support follows a decentralized model rather than a corporate helpdesk format. Assistance is available primarily through community documentation, developer GitHub repositories, and official community chat servers on Discord and Telegram, where moderators provide technical guidance regarding interface connectivity, contract interactions, and documentation interpretation.

Fyn is available globally over web interfaces, supporting tax frameworks and accounting standards for multiple jurisdictions, including the United States, Canada, Australia, and the United Kingdom. Its calculation engine accommodates local regulatory requirements by providing jurisdiction specific capital gains calculations and localized tax year parameters. The software supports standard tax exports compatible with mainstream consumer tax filing software as well as professional tax preparation suites used by certified public accountants.

Customer support is delivered primarily through an online help center, documentation libraries, and digital support ticketing channels. Users encountering missing pricing data, broken CSV formats, or unclassified smart contract transfers can access troubleshooting guides or submit support tickets directly through their user dashboard. While self service resources cover common API errors and data formatting questions, enterprise clients receive dedicated onboarding assistance and custom data mapping support to helps support their general ledgers align with corporate reporting timelines.