Lending · Review
ActiveFathom CDP Review 2026: Lending on XDC Network
Fathom is a non-custodial lending protocol on XDC Network where users supply XDC or USDC to earn variable interest or borrow against collateral. It has a recent Halborn verification, but TVL is small and the audit scope is narrow.
By the DappsAtlas editorial team · Updated
DappsAtlas score
6.2/10
Mixed
Our verdict on Fathom CDP
6.2/10Fathom suits users already on XDC Network who want a plain lending market for XDC and USDC. Its main strength is a clear, non-custodial design backed by a recent Halborn verification with no serious findings. The main caveat is scale: TVL is about $233,000, only two prime markets are named, and the Halborn work is not a full audit. Treat it as a small, higher-risk venue and size positions accordingly.
Score breakdown
How Fathom CDP scores
- Security
- 6.5/10
- Ease of use
- 7.5/10
- Fees
- 6.0/10
- Features
- 5.5/10
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 CDP?
Fathom is a non-custodial lending protocol on XDC Network. Users supply assets such as XDC and USDC to earn variable interest, or borrow against collateral they have deposited. XDC and USDC are the two prime markets.
The project began as Fathom Protocol, which let users deposit XDC and staked XDC to mint the FXD stablecoin, with links to RWA vaults and trade finance pools. The current homepage focuses on lending, and says older FXD, DEX and staking positions can still be managed in the app.
On the latest reading, total value locked is about $233,000, down 5.7% over seven days. That is small. The protocol also has a token, FTHM, though the lending pages do not describe its role.
How Fathom CDP works
Fathom is a pooled lending market. Suppliers deposit assets such as XDC or USDC into a shared pool and earn interest. Borrowers lock supplied assets as collateral and borrow from the pool, up to a loan-to-value limit set per market.
Interest rates are variable. When more of a pool is borrowed, rates rise, which attracts suppliers and discourages borrowing. Suppliers receive the interest borrowers pay, minus a 10% share kept by the protocol.
Each loan has a health factor based on collateral value and debt. Price oracles set collateral values. If the health factor falls below 1, the position can be liquidated, and Fathom says it runs its own liquidators alongside the open market. Withdrawals depend on available liquidity in the pool.
7 features
Key features
01
Supply and borrow markets
Supply XDC or USDC to earn a variable rate, or borrow against supplied collateral up to each market's loan-to-value limit.
02
Non-custodial design
Assets stay in the protocol rather than with Fathom, and users sign every action. The app shows cost and risk first.
03
Demand-based variable rates
Rates adjust with how much of each market is in use, so heavier borrowing raises both supply and borrow rates.
04
Native XDC handling
XDC can be supplied and borrowed directly, with wrapping and unwrapping handled within the same transaction.
05
Per-market price oracles
Each market has its own price feed, which sets collateral values, borrow limits and liquidation triggers.
06
Liquidation system
Undercollateralised loans are liquidated, and Fathom says it runs its own liquidators alongside the open market.
07
Lending MCP for tools
A Lending MCP lets users connect their own tools to read markets and positions, simulate actions and prepare transactions to sign. It never holds keys.
Pros and cons
What we like
- Non-custodial: users sign every action and assets stay in the protocol
- Halborn verified that deployed contracts match an audited lending codebase, with no critical to low findings
- Simple market table showing APYs, max LTV and liquidation thresholds
- Native XDC support with automatic wrapping
- Optional Lending MCP for reading markets and preparing transactions without holding keys
Watch out for
- TVL is small, about $233,000 on the latest reading, and fell 5.7% over seven days, so liquidity may be thin
- Only XDC and USDC are named as prime markets, which limits choice
- The Halborn work is a verification review, not a full-scope audit
- Runs only on XDC Network, so users need an XDC wallet and exposure to that chain
- Older FXD, DEX and staking products appear to have been moved out of focus, and the project's history may confuse new users
- Team, fees beyond the 10% reserve share and governance details are not published on the homepage
Fathom CDP fees
Fathom does not publish a fee table on its homepage. The one stated charge is a 10% share of borrower interest kept by the protocol, with suppliers receiving the rest. Supply and borrow APYs are variable and shown live in the app.
Users will also pay XDC network gas on each transaction. Current rates, max LTV and liquidation thresholds per market are listed in the app.
Is Fathom CDP safe?
Halborn carried out a codebase and deployment verification between 10 and 12 March 2026, with the report updated on 25 March 2026. It found no critical, high, medium or low issues and six informational ones, of which three were solved and three acknowledged. Fathom states this is a verification review, not a full-scope audit.
The product is non-custodial, but users still face smart-contract risk, oracle risk and liquidation risk if collateral value falls. Small liquidity can also limit withdrawals. The project does not publish team details on its homepage. Only borrow what you can afford to have liquidated, and check the legal status of DeFi where you live.
6 steps
How to get started with Fathom CDP
- 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 markets table for supply APY, borrow APY, max LTV and liquidation threshold.
- 4
Supply an asset to start earning the variable rate.
- 5
If borrowing, stay well below the max LTV and watch the health factor, keeping it above 1.
- 6
Repay or add collateral as needed, and withdraw subject to available liquidity.
Who Fathom CDP is for
Fathom is for XDC Network users who want to earn interest on XDC or USDC, or borrow against them, and who accept the risks of a small DeFi protocol. It also suits existing FXD or staking position holders who need to manage them. It is less suited to users who need deep liquidity or a wide asset list.
Fathom CDP FAQs
What is Fathom?
Fathom is a non-custodial lending protocol on XDC Network. Users supply assets such as XDC and USDC to earn variable interest, or borrow against supplied collateral. It grew out of an earlier Fathom Protocol that minted the FXD stablecoin.
Which assets does Fathom support?
The homepage names XDC and USDC as prime markets. Both can be supplied, borrowed and used as collateral. Native XDC is wrapped and unwrapped automatically in the same transaction.
How are interest rates set?
Rates are variable and follow demand: the more of a market is borrowed, the higher supply and borrow rates go. Suppliers earn borrower interest minus a 10% share kept by the protocol.
Has Fathom been audited?
Halborn verified that the deployed contracts match an audited lending codebase, with no critical, high, medium or low findings and six informational ones, all addressed or acknowledged. Fathom itself notes this is a verification review rather than a full-scope audit, so risk remains.
What is the health factor?
The health factor measures how safe a loan is from its collateral and debt. Above 1 the position is safe. If it drops below 1, part of the position can be liquidated.
What happens to older FXD positions?
The homepage says older FXD, DEX and staking positions can still be managed in the app. It points users to the project's X account for updates. The current focus is the lending product.
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How we checked
Sources
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