Xend Finance is a blockchain-based DeFi platform inspired by traditional credit unions. The company introduced the first cross-chain high yield aggregator for yield farmers on Binance Smart Chain and Polygon – with plans for more – and has an open Layer-2 DeFi infrastructure for developers.
Traditional credit unions tend to lack liquidity due to the smaller number of users, further exacerbated by geographical restrictions. Xend Finance's Decentralized Finance (DeFi) protocols claim to eliminate these geographical barriers and brings a new dimension to borrowing, saving and loaning.
The Xend Finance network has the Xend Token ($XEND) as its native network token. The $XEND tokens are used to reward users for saving, investing and performing different operations on the network. Xend Finance allows Credit Union operations and individual saving operations on the smart contract. The Xend Finance protocol native blockchain charges credit unions a small gas fee to create a union on the smart contract and a fee per complete save cycle. The fee is paid in $XEND tokens. A percentage of the fee is used to buy back the $XEND tokens to add liquidity to the protocol.
The Xend Finance smart contract periodically invests user savings (deposits) on DeFi lending protocols such as Compound, AAVE & Yearn Finance Protocol. The Annual Percentage Yield (APY) generated from these DeFi lending protocols are paid to the users of the Xend Finance protocol as interest. The Xend Finance protocol aggregates these protocols to get the best APY at all times to ensure users get the best APY.
Xend was originally built on the Ethereum (ETH) blockchain. Later, the Xend Finance team opted to move the system to the BNB Chain, the first to do so in Africa, and preparing the platform for scalability, high speed and a high level of security.