XPR Lending (LOAN Protocol)

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name: lending description: LOAN Protocol lending and borrowing on XPR Network (lending.loan contract)

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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