Lending

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.

Read-Only Tools (safe, no signing)

• loan_list_markets — list all lending markets with utilization, reserves, interest models, and collateral factors
• loan_get_market — get detailed info for a specific market by L-token symbol (e.g. "LBTC")
• loan_get_user_positions — get a user's supply (L-token shares) and borrow positions across all markets
• loan_get_user_rewards — get a user's unclaimed LOAN rewards per market
• loan_get_config — get global lending config (oracle, close factor, liquidation incentive)
• loan_get_market_apy — get historical deposit/borrow APY including LOAN rewards (7d, 30d, 90d) from Metal X API
• loan_get_market_tvl — get historical TVL (total value locked) in USD with utilization ratio (7d, 30d, 90d)

Write Tools (require confirmed: true)

All write operations require explicit confirmation. For supply and repay, the tool builds a token transfer to lending.loan. For borrow/redeem/withdraw, it calls the lending contract directly.

• loan_enter_markets — enter markets to enable lending/borrowing (must do this first)
• loan_exit_markets — exit markets (only if no outstanding positions)
• loan_supply — supply underlying tokens to earn interest (transfers to lending.loan with "mint" memo)
• loan_borrow — borrow underlying tokens against deposited collateral
• loan_repay — repay variable or stable borrows (transfers to lending.loan with "repay" memo)
• loan_redeem — redeem L-tokens for underlying tokens (burns deposited shares)
• loan_withdraw_collateral — withdraw L-tokens from collateral (reduces borrowing capacity)
• loan_claim_rewards — claim accrued LOAN token rewards

Typical User Flow

1. Enter markets — loan_enter_markets with the market symbols you want to use
2. Supply — loan_supply underlying tokens (e.g. 1.0 XBTC) → auto-mints LBTC and deposits as collateral
3. Borrow — loan_borrow against collateral (e.g. borrow 500 XUSDC using LBTC collateral)
4. Repay — loan_repay when ready to pay back the loan
5. Redeem — loan_redeem to withdraw your original tokens + earned interest
6. Claim — loan_claim_rewards to claim any LOAN token rewards

Safety Rules

• NEVER borrow close to the collateral factor limit — users will be liquidated
• Always recommend borrowing at most 50-60% of the collateral factor to leave a safety buffer
• Check utilization before redeeming — high utilization means less cash available for withdrawals
• Supply and repay use token transfers (to lending.loan with memo); borrow/redeem/withdraw use direct contract actions
• All write tools require confirmed: true — present the details first and ask for confirmation