Hi @chtbks-jason,
Currently, Builder hosted images are not converted automatically to webp or avif format, and as of now no integration is in the plan with Imgix but you can submit a feature request here Builder.io Ideas.
Converting images to the required webp or avif format might be the solution right now, you can read more about them at Guide to Image Optimization & High performance no-code image .
At a high level, Builder will not cause a performance hit and any content within Builder will be fully optimized. Builder.io generates all content with fully optimized images. The builder comes with advanced image optimization options, so instead of hard coding, you can simply automate it with Builder’s performance-obsessed, API-driven product. Builder saves your images as webp images when uploading and working with editor. If you right-click on your live page to save an image, it will be saved as webp.
Let us know if you have any further questions. Thank you!