Fathom CDP Review: Is XDC Lending Worth Using in 2026?

Fathom’s current product is a non-custodial lending protocol on XDC Network. You can supply XDC or USDC to earn variable interest, or use supplied assets as collateral to borrow. The app lists XDC and USDC as its prime markets, with active market details and rates shown in the app. Native XDC is wrapped and unwrapped within the transaction, so you do not have to manage that step separately.

Borrowing is limited by each market’s loan-to-value rules. Keep your health factor above 1: if it drops below that threshold, some collateral can be liquidated to help cover the debt. The current maximum LTV and live APYs are not included in the product details here, so check them in the app before supplying or borrowing. Fathom also says older FXD, DEX and staking positions can still be managed there; those legacy products are distinct from the current prime lending markets.

Fathom’s supply and borrow rates are variable, not fixed. Rates adjust with demand in each market, and suppliers earn interest paid by borrowers after the protocol’s share. Fathom says it retains 10% of borrower interest. The actual yield you receive depends on the market’s current rate and utilization, so an advertised or displayed APY can change.

You also need to account for XDC Network transaction costs when supplying, borrowing, repaying or withdrawing. Fathom does not publish a separate transaction-fee schedule in its product details, and gas costs can vary. The app is said to show the cost and risk of an action before you sign it; check those figures for each transaction. Withdrawals are subject to available market liquidity, so a deposit is not the same as an instantly accessible cash balance. Compare current rates and liquidity rather than relying on an old quoted yield.

Fathom describes the app as non-custodial: you sign actions with your wallet, while deposited assets sit in protocol contracts rather than being held by Fathom as a custodian. That reduces reliance on a company safeguarding an account balance, but it does not eliminate smart-contract, oracle, market or liquidation risks. A contract exploit or a sharp collateral-price move can still cause losses.

Fathom says Halborn verified its deployed contracts against an audited, battle-tested lending codebase. The stated engagement was codebase and deployment verification, not a full-scope audit. The report lists no critical, high, medium or low findings; it lists six informational findings, with three solved and three acknowledged. Treat this as a useful check, not a guarantee that the protocol is safe. Fathom does not publish its licensing status or KYC requirements. Review the terms and understand your local rules before using the app.

To use Fathom, connect a wallet that supports XDC Network and make sure it holds the asset you want to supply, plus enough XDC for network transactions. Select an active market and review its current APY, liquidity, collateral limits and liquidation threshold before signing. The rates are variable, so revisit them rather than assuming they will stay the same.

After supplying, you can borrow within the market’s collateral limits. Track your health factor and leave room for price changes; a position below 1 can be liquidated. You can repay or add collateral, and the product says withdrawals are possible subject to available liquidity. Fathom’s Lending MCP can read markets and positions and prepare transactions, but it does not hold keys; you still sign actions. The product information does not specify mobile app availability or a list of supported wallets, so confirm that your wallet works with XDC before moving funds.

Fathom is an XDC-only protocol, which limits its usefulness if your assets or preferred lending markets are on other networks. Its listed prime assets are XDC and USDC; check the app for any additional active markets before assuming an asset can be supplied or borrowed. Yields are variable, and withdrawals depend on available liquidity, so neither a particular return nor immediate access to all funds is assured.

The protocol’s security assurance has a clear boundary: Halborn checked the codebase and deployment match, but Fathom describes this as verification rather than a full-scope audit. Fathom does not publish licensing status, KYC requirements or a separate fee schedule in its product details. Those gaps matter if you need formal regulatory protections or fully itemized costs. Consider starting with an amount you can afford to risk, and do not borrow close to the maximum collateral limit.