lending
SKILL.md
LOAN Protocol (Metal X Lending)
You have tools to interact with the LOAN Protocol on XPR Network — a Compound-style pooled lending protocol at lending.loan. Users supply assets to earn interest and borrow against their collateral.
IMPORTANT: LOAN Protocol is mainnet only. There is no testnet deployment. All lending tools operate on mainnet.
Key Concepts
- L-Tokens — share tokens (LBTC, LUSDC, LXPR, etc.) representing a user's share in the lending pool. When you supply XBTC, you receive LBTC. L-tokens auto-compound interest.
- Collateral Factor — max borrow percentage of collateral value (e.g. 70% = can borrow up to $70 per $100 deposited). Borrowing close to this limit risks immediate liquidation.
- Utilization Rate — ratio of borrowed to total assets. High utilization = higher borrow rates. Each market targets an optimal utilization (kink point).
- Variable Rate — borrow rate that fluctuates with utilization. All borrowers in a market pay the same variable rate.
- Liquidation — when a user's borrow exceeds their collateral factor threshold, liquidators can repay the debt and seize discounted collateral. Liquidation incentive is currently 10%.
- LOAN Token — governance/reward token. Suppliers and borrowers earn LOAN rewards proportional to their position.
Available Markets
14 active markets including: XUSDC, XBTC, XETH, XPR, XMT, XDOGE, XLTC, XXRP, XSOL, XXLM, XADA, XHBAR, XUSDT, XMD.