Lending · Review
ActiveTorches Review 2026: Small Lending Protocol on KCC
Torches is a non-custodial lending protocol on KuCoin Community Chain where users deposit assets to earn interest or borrow against collateral. TVL is very small, so treat it as a niche, low-liquidity market.
By the DappsAtlas editorial team · Updated
DappsAtlas score
5.0/10
Mixed
Our verdict on Torches
5.0/10Torches suits experienced DeFi users who already operate on KuCoin Community Chain and want a simple, non-custodial place to lend or borrow. Its main strength is the straightforward over-collateralised money-market model with two listed audits. The main caveat is scale: with TVL near $25,000, liquidity is thin and public sources give no rates, asset lists or audit detail. Review the audit reports and market parameters yourself and keep positions small.
Score breakdown
How Torches scores
- Security
- 5.0/10
- Ease of use
- 6.5/10
- Fees
- n/a
- Features
- 4.5/10
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 Torches?
Torches is a decentralized lending protocol on KuCoin Community Chain (KCC). Users can deposit assets to earn passive income, or borrow other assets by posting collateral instead of selling.
DefiLlama has tracked it since July 2022 and files it under Lending. Its listed TVL is about $25,565, up 4.2% over the past week, and it shows two audits and no native token.
The homepage describes it as a leading lending protocol on a secure, fast and low-cost chain, but gives no figures for rates, supported assets or team. Treat it as a small, niche market.
How Torches works
Torches is a money market. Depositors supply crypto to a shared pool and earn interest. Borrowers take assets from that pool and pay interest in return.
Because there is no credit check, borrowers must lock collateral worth more than the loan. This is called over-collateralisation. If the collateral value falls too close to the loan value, the position can be liquidated to repay the debt and protect depositors.
The protocol is non-custodial, so funds sit in smart contracts rather than with a company. It is deployed on KuCoin Community Chain, and the project does not describe other mechanics such as interest-rate models or governance.
5 features
Key features
01
Deposit to earn interest
Users deposit assets into shared markets and earn passive income from borrowers. The protocol is described as non-custodial.
02
Over-collateralised borrowing
Borrowers post collateral and take loans without selling their holdings. Loans are over-collateralised.
03
KCC-native deployment
The protocol is built for KuCoin Community Chain, which the homepage describes as fast and low-cost.
04
Open to wallets and dapps
Users, wallets and other dapps can take part as depositors or borrowers, so other apps can integrate with it.
05
Audits listed
DefiLlama records two audits for the project. Details are not given publicly.
Pros and cons
What we like
- Non-custodial design: funds are held in smart contracts, not by a company
- Simple lend and borrow model that is easy to understand
- Two audits are listed on DefiLlama
- Built for KCC, which the homepage describes as low-cost and fast
- No native token, so there is no token-price exposure
- Listed since 2022, giving it a multi-year presence
Watch out for
- TVL is only about $25,565, so liquidity is very thin and large trades or loans may not be practical
- Runs only on KuCoin Community Chain, which has a small ecosystem compared with major networks
- No native token is listed, and no incentive or governance structure is described publicly
- Audit details (auditors, dates, scope) are not included publicly, only that two audits are listed
- Homepage is minimal, so rates, supported assets and risk parameters could not be confirmed
- Over-collateralised loans carry liquidation risk if collateral prices fall
Torches fees
Torches does not publish fee details available. Lending protocols of this type usually charge borrowers a variable interest rate, part of which goes to depositors, and some take a reserve cut. The actual rates and any reserve factors would be shown in the app's market pages.
You would also pay network gas fees on KuCoin Community Chain. The homepage describes the chain as low-cost, but no specific figures are given.
Is Torches safe?
DefiLlama lists two audits, but the project does not say who performed them or what they covered. Audits lower the chance of contract bugs but do not remove it, and lending protocols also face oracle and liquidation risk.
The protocol is non-custodial, so you keep control of your keys but also bear the risk of contract failure. With TVL around $25,565, there is little liquidity, and the small scale and single-chain focus add risk. No incidents or regulatory status are described publicly. Only use funds you can afford to lose.
6 steps
How to get started with Torches
- 1
Check that you understand the risks of lending and borrowing, including liquidation and smart-contract risk.
- 2
Set up a wallet that supports KuCoin Community Chain and add the KCC network.
- 3
Get some KCS for gas and the assets you want to deposit or use as collateral.
- 4
Open the official Torches site and connect your wallet.
- 5
Review each market's supply rate, borrow rate and collateral factor, and read the audit information.
- 6
Start with a small deposit, and if borrowing, keep a wide safety margin above the liquidation threshold.
Who Torches is for
Torches is for DeFi users already on KuCoin Community Chain who want a basic lend and borrow market and accept the risks of a small protocol. It is less suited to people who need deep liquidity, large loans or a wide choice of assets.
Torches FAQs
What is Torches?
Torches is a decentralized, non-custodial liquidity protocol on KuCoin Community Chain (KCC). Users can deposit crypto to earn passive income or borrow other assets by posting collateral.
Which blockchain does Torches run on?
Public sources list KuCoin Community Chain (KCC) as the only chain. Wallets and dapps on that network can interact with the protocol as depositors or borrowers.
How does borrowing on Torches work?
Loans are over-collateralised, meaning you must lock more value than you borrow. This lets you borrow without selling your assets, but if collateral value drops too far it can be liquidated.
Is Torches audited?
DefiLlama lists two audits for Torches, but the project does not name the auditors or give the scope. Audits reduce but do not remove smart-contract risk, so check the audit reports on the official site before depositing.
Does Torches have a token?
No. DefiLlama shows no token for the project.
How much is locked in Torches?
DefiLlama shows TVL of roughly $25,565 with a 4.2% rise over seven days. That is a very small amount, which can mean limited liquidity and wider rate swings.
Compare
Torches alternatives
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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
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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.
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DxSale, now DX App, is a multi-chain launchpad for token presales, minting, liquidity locking and airdrops, for project teams and presale investors.
KuCoin is a centralized crypto exchange, launched in 2017, offering spot, futures, margin, Earn and bots across hundreds of assets for active traders.
Autofarm is a multichain yield aggregator with auto-compounding vaults and the AutoSwap DEX aggregator, listed with about $6M TVL on DefiLlama.
MojitoSwap is a small automated market maker and yield farm on the KCC chain with farms, Wine Pools and an MJT token, aimed at KCC DeFi users.
OpenLeverage is a permissionless lending and margin trading protocol for taking long or short positions on DEX pairs across several chains.
How we checked
Sources
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