Lending · Review
ActiveFathom Lending Review 2026: Non-Custodial Lending on XDC
Fathom Lending 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 code-verification report but small liquidity.
By the DappsAtlas editorial team · Updated
DappsAtlas score
6.0/10
Mixed
Our verdict on Fathom Lending
6.0/10Fathom Lending suits users already on XDC Network who want a straightforward, non-custodial way to earn on XDC or USDC or borrow against them. Its strengths are a clear markets table, a stated 10% protocol share, and a recent Halborn verification with no critical to low findings. The main caveat is scale: tracked TVL is around $302,000, the audit work is verification rather than a full audit, and everything depends on one chain. Treat it as a small, higher-risk venue and size positions accordingly.
Score breakdown
How Fathom Lending scores
- Security
- 6.5/10
- Ease of use
- 7.5/10
- Fees
- 6.5/10
- 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 Lending?
Fathom Lending is a non-custodial lending protocol on XDC Network. Users supply assets like XDC and USDC to earn variable interest, or borrow against collateral they have deposited. XDC and USDC are described as the prime markets.
The project grew out of the Fathom Protocol, which was built around the FXD stablecoin, RWA vaults and trade finance pools. The current homepage centres on plain lending and borrowing, and tells holders of older FXD, DEX or staking positions to manage them in the app.
Tracked TVL is about $302,000, and the project was listed in April 2024. That is small, so the protocol suits people already active on XDC Network rather than those looking for deep liquidity. The project lists FTHM as its token.
How Fathom Lending works
Fathom is a pooled lending market. Suppliers deposit assets into a market and earn a variable rate. Borrowers lock supplied assets as collateral and borrow from the same pool, up to the market's loan-to-value limit.
Interest rates move with utilisation. When more of a pool is borrowed, both borrow and supply rates rise, which encourages repayment and new deposits. Suppliers can withdraw at any time, subject to available liquidity.
Safety of each loan is tracked by a health factor, built from collateral value (set by the market's price oracle) and debt. If it falls below 1, the position can be liquidated by liquidators, including ones Fathom operates, so that the market stays solvent.
7 features
Key features
01
Non-custodial lending
Assets stay in the protocol rather than with Fathom. You sign every action and the app shows its cost and risk first.
02
Variable interest rates
Supply and borrow rates adjust to how much of each market is in use, so both rise as utilisation grows.
03
XDC and USDC markets
XDC and USDC are the prime markets. Each lists supply and borrow APY, total supplied, max LTV and liquidation threshold.
04
Native XDC support
You can supply and borrow XDC directly. Wrapping and unwrapping happen for you in the same transaction.
05
Per-market price oracles
Each market has its own price feed, which sets collateral values and borrow limits and decides when a position can be liquidated.
06
Liquidation protection
Undercollateralised loans are liquidated promptly. Fathom 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 design: users keep control of assets and sign every action.
- Clear market table showing APY, max LTV and liquidation threshold for each asset.
- Halborn verified that deployed XDC contracts match an audited lending codebase, with no critical to low findings.
- Native XDC handling removes manual wrapping and unwrapping.
- Optional Lending MCP allows tool integrations without the service holding keys.
Watch out for
- Tracked TVL is only about $302,000, so markets are shallow and large positions could be hard to enter or exit.
- Only two prime markets (XDC and USDC) are highlighted, which limits collateral and borrowing choices.
- The Halborn work is a verification review of deployed code against an audited codebase, not a full-scope audit of Fathom itself.
- Liquidity depends on one chain, XDC Network, so users take on that network's risks and its smaller DeFi ecosystem.
- Older FXD, DEX and staking products have been moved out of the main interface, which may confuse legacy users.
- Team, governance details and any bug bounty are not published on the homepage.
Fathom Lending fees
Fathom does not publish a fee schedule beyond its interest mechanics. Suppliers earn the interest borrowers pay, minus a 10% share kept by the protocol. Supply and borrow APYs are variable and shown live in the app and on the markets table.
You will also pay XDC Network gas on each transaction. Other items, such as liquidation penalties, are not stated on the homepage and would be shown in the app's market details.
Is Fathom Lending safe?
Fathom states that Halborn verified its contracts match an audited, battle-tested lending codebase and that the contracts deployed on XDC Network match it. The engagement ran 10 to 12 March 2026, with the report updated on 25 March 2026. It lists zero critical, high, medium or low findings and six informational ones, three solved and three acknowledged. Fathom itself describes this as a verification review, not a full-scope audit.
Smart-contract, oracle and liquidation risk remain, as with any lending pool. Liquidity is small, and the project does not publish details such as team, bug bounty or insurance on its homepage. Only deposit what you can afford to lose and keep your health factor well above 1.
6 steps
How to get started with Fathom Lending
- 1
Set up a wallet that supports XDC Network and fund it with XDC or USDC.
- 2
Open the Fathom app and connect the wallet on XDC Network.
- 3
Review the markets table for 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 want to borrow, choose an amount below the market's loan-to-value limit and check the health factor the app shows.
- 6
Monitor the health factor, and repay or add collateral before it nears 1.
Who Fathom Lending is for
Fathom is aimed at XDC Network users who want to lend or borrow XDC and USDC without handing assets to a custodian. It also suits people with older FXD, DEX or staking positions who need to manage them. It is less suited to anyone needing deep liquidity, many collateral types or a multi-chain setup.
Fathom Lending FAQs
What is Fathom Lending?
Fathom Lending is a non-custodial lending protocol on XDC Network. Users supply assets such as XDC and USDC to earn variable interest, or borrow against assets they have supplied. It grew out of the earlier Fathom Protocol, which was built around the FXD stablecoin.
Which assets does Fathom Lending support?
XDC and USDC are the prime markets. Both can be supplied, borrowed and used as collateral, and native XDC is wrapped and unwrapped for you within the same transaction. Other active markets are listed in the app.
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 receive the interest borrowers pay, minus a 10% share kept by the protocol.
Has Fathom Lending been audited?
Halborn verified that Fathom's contracts match an audited, battle-tested lending codebase and that the contracts deployed on XDC Network match that code. The report found no critical, high, medium or low issues and six informational ones, all addressed or acknowledged. 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 value and debt. Above 1 the position is safe. Below 1, part of it can be liquidated, so you should repay or add collateral before it gets close.
What happens to older FXD, DEX or staking positions?
The project's site says you can still manage older FXD, DEX or staking positions in the app. For updates it points users to its official account on X.
Does Fathom have a token?
Fathom's token is listed as FTHM. The lending homepage does not describe any token utility or staking rewards, so check official channels before relying on it. Do not confuse it with the unrelated stock that shares the ticker.
Compare
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How we checked
Sources
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