XDC Network Onboards Fathom Protocol To Boost Liquidity in DeFi
A cascade of tragic events occurred in the crypto market in 2022 sweeping away millions of funds from investors and traders. For most of the catastrophic collapses, liquidity crunch was pointed out as the dominating reason. Currently, overcoming this crisis and boosting the crypto market’s liquidity is the challenge.
Numerous DeFi protocols are being launched with the objective of increasing the crypto ecosystem’s liquidity. One of those is the Fathom protocol, a borrow-and-earn DeFi protocol. Notably, XDC Community announced the integration of this sustainable liquidity protocol into its ecosystem. This integration is aimed to escalate the liquidity of various crypto assets on the network, especially its native token, XDC.
XDC Community stated:
“The Fathom protocol brings retail investors alongside institutions within a decentralized marketplace for the first time on XDC Network.”
Co-founders @RensManu & @baldy_ash introduce the #FathomDeFi ecosystem with plans to disrupt the #XDC #DeFi landscape with a sustainable liquidity protocol supporting $XDC and real-world asset (#RWA) tokenization.
— XDC Community (@xdc_community) February 1, 2023
Significantly, the Fathom co-founders highlighted three key reasons for the DeFi protocol’s existence. Firstly, the Fathom protocol aims to confer more utility and liquidity to XDC Network’s native cryptocurrency – XDC. Secondly, it focuses on building the “next-gen DeFi protocol” with a sustainable revenue pool. Thirdly, Fathom targets to wire sustainable stablecoins and real-world assets (RWAs) to the XDC ecosystem.
The XDC-powered Fathom protocol functions to expand the XDC token’s liquidity through its over-collateralized stablecoin FXD. Simply put, the protocol upgrades a margin-long strategy to achieve the liquidity goal. That is, on staking XDC tokens, users earn FXD and then utilize this stablecoin to purchase more XDC tokens. Primarily, the protocol aims to transform FXD into a revolutionary decentralized protocol currency. Also, with its complete launch, Fathom will unlock liquid staking, lending, decentralized exchange (DEX), and toolkits like RWAs, and digital asset composers on XDC Network.
Manuel Rensink, Co-Founder of the Fathom Protocol, said:
“As we imagine Fathom, to be a primitive on which innovators can write new fixed income or derivative protocols as an example.”
Ultimately, the Fathom team stated that their mission is to introduce new DeFi protocols as enhanced yield sources in the ecosystem. Through this integration, XDC Community is strengthened with diverse liquidity-based services.