Lending · Review
ActiveFathom AMM Review 2026: Non-Custodial Lending on XDC
Fathom began as an XDC-based DEX and FXD stablecoin protocol and now presents itself as a non-custodial lending market on XDC Network. It is a small, simple product with a recent verification report, but liquidity is thin.
By the DappsAtlas editorial team · Updated
DappsAtlas score
6.0/10
Mixed
Our verdict on Fathom AMM
6.0/10Fathom suits XDC Network users who want a simple, non-custodial place to earn on XDC or USDC or borrow against them. Its main strength is a focused product with a recent Halborn verification of the deployed contracts. The main caveat is size: about $47,000 in value locked means thin liquidity, and the review is a verification rather than a full audit. Treat it as a small, higher-risk market and size positions accordingly.
Score breakdown
How Fathom AMM scores
- Security
- 6.5/10
- Ease of use
- 7.5/10
- Fees
- 5.5/10
- Features
- 5.0/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Fathom AMM?
Fathom is a DeFi protocol on XDC Network. It launched as a liquidity platform where users minted the FXD stablecoin against XDC and staked XDC, with RWA vaults and trade finance pools on top. It is tracked as a DEX and has its own token, FTHM.
The current homepage tells a different story. Fathom now describes itself as a non-custodial lending protocol with XDC and USDC as its prime markets. Older FXD, DEX and staking positions can still be managed in the app, but the front page focuses on lending and borrowing.
The protocol is small. Total value locked is about $47,000, down around 2.6% over the past week, and it has been listed since June 2023. The most notable recent development is a March 2026 Halborn verification report on the lending contracts.
How Fathom AMM works
Fathom is a pooled lending market. Suppliers deposit assets such as XDC or USDC into a shared pool and earn a variable rate. Borrowers lock supplied assets as collateral and borrow from the pool up to a loan-to-value limit set for each market.
Rates adjust with utilisation. When more of a pool is borrowed, both rates rise, which encourages repayment and new deposits. Suppliers receive borrower interest minus a 10% share kept by the protocol.
Safety depends on collateral value. Each market has a price oracle, and a health factor compares collateral with debt. If it falls below 1, part of the position can be liquidated by Fathom's own liquidators or by outside participants, which keeps the pool solvent. Withdrawals are possible at any time but depend on liquidity not being fully borrowed.
8 features
Key features
01
Non-custodial lending
Users supply assets to earn a variable rate or borrow against collateral. Funds stay in protocol contracts and every action is signed by the user.
02
XDC and USDC markets
XDC and USDC are the two prime markets. Each market shows supply APY, borrow APY, total supplied, max loan-to-value and liquidation threshold.
03
Demand-based variable rates
Supply and borrow rates move with how much of each market is in use, so heavier borrowing raises both rates.
04
Native XDC handling
XDC can be supplied and borrowed directly. Wrapping and unwrapping happens in the same transaction.
05
Per-market price oracles
Each market has its own price feed. Prices set collateral values and borrow limits, and decide when a position can be liquidated.
06
Liquidation protection
Undercollateralised loans are liquidated promptly. Fathom says it runs its own liquidators alongside the open market.
07
Lending MCP tooling
A Lending MCP lets users connect their own tools to read markets and positions, simulate actions and prepare transactions. It does not hold keys, and the user signs in the app.
08
Deployment verification
Halborn verified the contracts against an audited lending codebase and checked the XDC deployment, with no critical to low findings.
Pros and cons
What we like
- Clear, narrow product: supply, borrow, monitor and repay on XDC Network.
- Non-custodial design, with the user signing every action and seeing cost and risk first.
- Halborn verified the deployed contracts match an audited lending codebase, with no critical, high, medium or low findings.
- Market table shows max LTV and liquidation threshold for each asset.
- Native XDC support with automatic wrapping and unwrapping.
- Optional Lending MCP for connecting your own tools without handing over keys.
Watch out for
- Total value locked is small at roughly $47,000, so markets may be thin and withdrawals can depend on available liquidity.
- Only XDC and USDC are named as prime markets, which gives limited choice compared with larger lending protocols.
- The Halborn work is a verification review of the codebase and deployment, not a full-scope audit of the protocol.
- The protocol sits on a single chain, XDC Network, so users take on that network's risks and liquidity limits.
- Older FXD, DEX and staking products have been moved out of the main focus, so legacy users must manage positions separately in the app.
- Variable rates and liquidation mean borrowers can lose collateral if prices move sharply.
Fathom AMM fees
Fathom's published fee detail is limited to one item: suppliers earn the interest borrowers pay, minus a 10% share kept by the protocol. Supply and borrow rates are variable and shown live in the app for each market.
Other costs, such as XDC network gas, liquidation penalties or any fees on legacy products, are not listed on the homepage. Users would see liquidation thresholds and the cost of each action in the app before signing.
Is Fathom AMM safe?
Fathom is non-custodial: assets are held in protocol contracts, not by the team, and the user signs every transaction. The main risks are therefore smart-contract bugs, oracle errors, liquidation events and thin liquidity on a small XDC-based market.
Halborn engaged from 10 to 12 March 2026, with the report updated on 25 March 2026. It confirmed the contracts match an audited, established lending codebase and that the XDC deployment matches that code. There were no critical, high, medium or low findings and six informational ones: three solved and three acknowledged. The project states this is a verification review, not a full-scope audit. Team details and regulatory status are not published on the homepage.
6 steps
How to get started with Fathom AMM
- 1
Set up a wallet that works on XDC Network and fund it with XDC or USDC.
- 2
Open the Fathom app and connect the wallet.
- 3
Review the live markets, including supply APY, borrow APY, max LTV and liquidation threshold.
- 4
Supply an asset such as XDC or USDC to start earning the variable rate.
- 5
If you borrow, keep the amount well under the max LTV and watch the health factor, which must stay above 1.
- 6
Repay or add collateral as needed, and withdraw when you want, subject to available liquidity.
Who Fathom AMM is for
Fathom is for XDC Network users comfortable with DeFi lending who want to earn variable interest on XDC or USDC or borrow against collateral. It also suits holders of older FXD, DEX or staking positions who need to manage them. It is a poor fit for anyone needing deep liquidity, many asset choices or multi-chain support.
Fathom AMM FAQs
What is Fathom AMM?
Fathom is a non-custodial lending protocol on XDC Network. Users supply assets such as XDC or USDC to earn variable interest, or borrow against their supplied collateral. It was earlier known for an FXD stablecoin, a DEX and staking.
Which assets can I lend or borrow on Fathom?
The site lists XDC and USDC as the prime markets. Both can be supplied, borrowed and used as collateral. Native XDC is wrapped and unwrapped for you inside the same transaction.
How are interest rates set?
Rates are variable and follow demand: the more of a market is borrowed, the higher both supply and borrow rates go. Suppliers receive the interest borrowers pay, minus a 10% share kept by the protocol.
Has Fathom been audited?
Halborn verified that Fathom's contracts match an audited lending codebase and that the contracts deployed on XDC Network match that code. The engagement ran 10 to 12 March 2026 and reported no critical, high, medium or low findings, plus six informational ones that were solved or acknowledged. The project itself notes it is a verification review, not a full-scope audit.
What is the health factor?
The health factor measures how safe a loan is based on collateral and debt. Above 1 the position is safe. Below 1, part of it can be liquidated, so borrowers should repay or add collateral before that point.
What happens to older FXD, DEX or staking positions?
Yes. The project says legacy FXD, DEX and staking positions can still be managed in the app, and it points users to its X account for updates. Specific wind-down terms are not published on the homepage.
Is Fathom safe to use?
Fathom describes itself as non-custodial, so assets stay in the protocol and you sign every action. You still face smart-contract, oracle, liquidation and low-liquidity risks, and only a small amount of value is currently locked.
Compare
Fathom AMM alternatives
Morpho Blue is a permissionless lending primitive with about $11.4 billion in TVL on DefiLlama, accessed mainly through curated vaults.
Aave V3 is a non-custodial DeFi lending protocol on 21 chains where users earn interest on deposits or borrow against collateral.
Dolomite is a multi-chain DeFi money market for lending, borrowing and leveraged strategies across 1,000+ assets, with its own DOLO token.
Compound V3 is a lending protocol on Ethereum and nine other chains where users supply a base asset for yield or borrow it against collateral.
SparkLend is a stablecoin lending market on Ethereum and Gnosis with governance-set rates, backed by Sky's Liquidity Layer, for borrowers and savers.
Save, formerly Solend, is a Solana lending and borrowing protocol where users earn interest on deposits or borrow against collateral.
Same category
More Lending dApps
Euler V2 is a modular DeFi lending protocol for lenders, borrowers and market curators, with about $268M TVL across 16 chains.
Morpho is a decentralized lending protocol with isolated markets, curated vaults and fixed-rate loans for crypto lenders, borrowers and developers.
Kamino Finance is a Solana DeFi protocol offering lending, automated liquidity vaults and leverage tools for users seeking on-chain yield.
Aave V4 is a modular, non-custodial lending protocol using a hub-and-spoke design, for users who want to earn on or borrow against crypto.
Venus Core Pool is a multi-chain DeFi money market where users supply crypto to earn interest or borrow against collateral, with about $1.18B in TVL.
Kamino is a Solana DeFi protocol with a lending market, automated concentrated liquidity vaults and an intents-based swap, for yield-seeking on-chain users.
Same chain
More on XDC
Uniswap V3 is a non-custodial decentralized exchange protocol for token swaps and concentrated liquidity provision across 40+ chains.
LayerZero V2 is a cross-chain messaging protocol and bridge infrastructure for developers and asset issuers, connecting dozens of blockchains.
Sablier Lockup is an audited onchain protocol for token vesting, payroll, grants and airdrops, aimed at DAOs and businesses across many chains.
Gate is a centralized crypto exchange founded in 2013 offering spot, futures, stocks and earn products for traders who want one multi-asset account.
dRPC is a multichain RPC provider offering managed cloud endpoints, an open-source load balancer and chain infrastructure tools for developers and foundations.
Bitget is a centralized exchange for crypto spot and futures that also offers tokenized stocks, commodities and forex in one account, for active traders.
How we checked
Sources
Last updated . Spotted an error? Tell us and we will correct it.