Blend

Blend is a liquidity protocol primitive. It’s the foundation on which safe, efficient lending pools are created by anyone. An entity can create a lending pool to enable users to earn interest and borrow assets, all while being insured by a unique backstop module. Creators are given plenty of controls – from supported assets, collateral requirements, custom oracles, and immutability – such that almost no use case is left out.

There are no requirements to deploy a Blend lending pool, anyone can utilize this tool to bring additional functionality to their Stellar based assets! However, there are requirements to enable interaction with pools, as permissionless deployment can lead to spam and attempted scams with fake pools. To combat this, lending pools need to have a minimum amount of funds in the backstop module before anyone can use them.

After creation, Blend lending pools adapt to market conditions to ensure all capital is used efficiently. If assets aren’t being utilized effectively, interest rates will lower to entice more users to begin borrowing, and vice versa – no DAO proposal required!

All of this occurs while suppliers to a Blend lending pool remain protected by the backstop module. In the event of bad debt, stolen funds, or other loss, backstop module funds are used to replace assets for suppliers. Further, Blend’s liquidation engine helps ensure that damage is limited in the event an oracle is exploited.