On the XDC chain, Fathom, the largest lending/borrowing platform has been built. Significantly, Fathom will provide a platform for consumers to borrow, and earn XDC and tokenized Real-World Assets (RWA) as collateral to borrow the over-collateralized price-stable currency FXD.
The fundamental premise is the sustainable liquidity protocol, which is to lend XDC and borrow FXD to receive liquid staking rewards to transact and trade in the ecosystem. And, like the MakerDAO, the protocol is non-algorithmic, but it is over-collateralized by XDC.
XDC Community welcomes @Fathom_fi to the #XDCNetwork!
— XDC Community (@xdc_community) February 1, 2023
Co-founders @RensManu & @baldy_ash introduce the #FathomDeFi ecosystem with plans to disrupt the #XDC #DeFi landscape with a sustainable liquidity protocol supporting $XDC and real-world asset (#RWA) tokenization.
🧵👇 pic.twitter.com/sPSwTYwRSx
The Fathom also has the FTHM governance token. And liquidity staking on XDC and the lending protocol DEX as a toolkit. As well as providing the required infrastructure for innovators to construct new protocols on XDC such as fixed income or derivatives. And the co-founders Manuel Rensink & Anton Grigorev have revealed that they are onboarding more assets on the Fathom protocol.
Fathom protocol stated:
“Fathom combines lending returns with XDC liquidity staking returns to provide investors with a significantly higher interest rate than is generally accessible on other one-dimensional lending platforms.”
The Fathom is designed to increase the XDC token’s utility and liquidity, which will benefit the XDC community. In addition, one can stake XDC on Fathom, get a stablecoin, and use it to buy additional XDC; this process is also known as a margin-long strategy.
They have created the next-generation DeFi protocol with a shareable revenue pool that will be used by the holders of Fathom tokens. As well as adding additional stablecoins and RWA to XDC, Fathom may increase the productivity of these real-world assets.
Fathom targets corporate borrowers seeking funding as well as consumers and institutional investors. The Fathom is to be primitive that innovators can use to create a new fixed income or derivative protocol, which is the final step for the builders.
The mainnet will go live in December and they also open up additional yield sources for the XDC ecosystem, according to the co-founders.
