xLend FAQ

How does xLend work?

xLend by XOXNO is a decentralised way to make your crypto work for you without selling it. If you lend your tokens, you earn interest from borrowers. If you need extra funds, you can borrow by putting up your crypto as collateral instead of selling it. This way, you keep ownership of your assets while still accessing liquidity. Everything is handled by smart contracts, making it secure and automatic.

When can my position be liquidated?

Your position may be liquidated during high market volatility if the value of your collateral drops significantly, pushing your health risk factor above 100%. This triggers a liquidation to protect the protocol.

Where does the protocol get token prices from?

Token prices are sourced from reliable off chain oracles (Binance, OKX, Coinbase) and decentralized exchanges (xExchange safe price) integrated with the MultiversX ecosystem to ensure accurate and real-time valuations.

What fees do I pay if my position is liquidated?

If liquidated, you pay a cumulative fee based on the amount repaid by the liquidator. This includes:

• A static fee (1%–5%).

• A dynamic bonus fee (0% for a risk factor of 101%, up to 15% for very unhealthy positions above 111%).

Total fees range from 1% for slightly unhealthy positions to a maximum of 20% for high-risk positions that could create bad debt.

How much of my collateral can be liquidated at once?

Liquidators only take the minimum amount needed to restore your position to a healthy state (health risk factor below 100%), ensuring your remaining collateral is preserved.

Can I become a liquidator?

Yes, anyone can become a liquidator on the XOXNO protocol. You can view all liquidateable positions here.

How much does a liquidator earn?

Liquidators earn 95% of the bonus fee paid by the liquidation process. The remaining 5% goes to the protocol as a service fee.

How do siloed and isolated markets work?

• Siloed Markets (Borrowing): When borrowing a token in a siloed market, you can only borrow that specific token in that position. For example, borrowing MEX means you cannot borrow eGLD in the same position, reducing cross-asset risk.

• Isolated Markets (Supplying): When supplying a token to an isolated market, you can only supply that specific token to that position. For instance, supplying UTK restricts you from adding eGLD to the same position.

This segregation enhances risk management by isolating assets and simplifying liquidations.

Can I get liquidated when looping with base and liquid-staked tokens?

Yes, liquidation is possible if the borrowing APY for the base token exceeds the combined APY of the supplied liquid-staked token plus its staking rewards. Over time, this can cause your debt to surpass your collateral ratio, leading to liquidation.

Why am I asked to select a position?

Every time you supply or borrow, you can select an existing position or create a new one. Thanks to this boxlike design, your positions are independent from one another. Hence, if you have a risky position (e.g. Supply EGLD, borrow XOXNO) and a less risky one (Supply EGLD, borrow USDC), liquidation in one position leaves your other position completely unaffected.

What’s the easiest way to transfer funds from Hatom to xLend?

If you hold HTM tokens in your wallet or deployed on the Hatom protocol, the xLend smart contract will automatically detect them. Simply log in to the xLend Lending module with your wallet, and a “Migrate Funds” button will appear to transfer your funds seamlessly.

Do I need to stake XOXNO to earn additional APY?

No, unlike other lending protocols, you don’t need to stake XOXNO to earn extra APY on supplied assets. However, staking XOXNO (as LXOXNO) allows you to get a % of the 30% Real Yield generated from fees across all XOXNO protocols, apps, and the eGLD Liquid Staking contract.

In what do I receive my rewards?

The rewards are always generated in the token you supply, e.g. 100 USDC supplied at a rate of 10% per year will accumulate you 10$ USDC over the entire year. Your balance grows every second so you could anytime withdraw the increased balance at any moment.

Can I withdraw my funds at any time?

You can usually withdraw any collateral exceeding your debt whenever you want. In rare cases of low market liquidity, full withdrawals may be limited. However, in such scenarios, borrowing APY spikes, encouraging borrowers to repay debts, which in turn boosts your supply of APY, compensating for the inconvenience.

What are xLend’s markets?

An xLend market refers to a token that can be lent or borrowed within the protocol, such as WBTC, eGLD, or XOXNO, each operating within its own lending and borrowing framework.

Where does the protocol get prices for liquid-staked tokens?

Prices for liquid-staked tokens are sourced directly from the Liquid Staking Smart Contract, ensuring accurate and up-to-date valuations without the risks or price changes on DEX pairs