What is the LOAN Protocol?

LOAN Protocol is a non-custodial decentralized lending protocol built on XPR Network consisting of two parties:

• Depositors who lend tokens to a market

• Borrowers who borrow the lent tokens from a market and pay interest to the depositors in return

As one does not know the parties who engage as borrowers, it is impossible to accurately assess a borrower's default risk. This risk is accounted for by requiring all loans to be over-collateralized.

Each borrowing market has a Collateral Factor, a percentage value determining the max a user can borrow versus their deposited value (common values are ~70%). Thus, to borrow $B, a borrower has to put up $C as collateral where the following holds: $B <= $C x Collateral Factor

Generally, the collateral factor is lower for volatile markets and higher for more stable markets.

Watch this quick Guide to Lending on Metal X by x.com/paulgrey

Why LOAN?

The LOAN Protocol and Metal X Lending opens up a new possibility for borrowing and lending against multiple blockchains that were not previously accessible on Ethereum or other blockchain protocols. By using a system of smart contracts powered by the XPR Network, users can request and fulfill loans using cryptocurrency without the need for a central mediator and without regard for the parent blockchain protocol of the requested asset.

No transaction fees on XPR Network

The XPR Network blockchain charges no gas or mining fees to end-users – transactions on XPR Network are free. Validators get rewarded in XPR for validating transactions.

Learn more about the XPR Network

Learn more about the XPR Network and ecosystem in our overview.

XPR Network & Ecosystem

LOAN Protocol FAQ

Check out the most frequently asked questions here with answers.

Metal X Lending FAQ

Glossary

Check out our explanations of common terms used.

Glossary

Guides: Get Started On LOAN Protocol

Follow our handy guides to get started.