Blend Capital

• Name: Blend Capital
• URL: https://blend.capital/
• Category: permissionless lending-pool primitive / isolated money-market infrastructure / backstop-governed credit protocol
• Tags: stellar-ecosystem
• Summary: Blend is isolated-pool lending on Soroban, with the backstop doing real work. The important surface is pool-local control: deployer-set assets and oracle choices, owned-versus-standard pool governance, and first-loss BLND:USDC backstops.
• What it does:
  • Lets users, DAOs, and institutions deploy isolated lending pools on Stellar/Soroban with pool-specific supported assets, collateral/liability factors, oracle choices, and utilization targets
  • Segments risk pool-by-pool so bad debt, oracle failures, and liquidations in one pool do not spill over into others
  • Supports both immutable standard pools and delegated owned pools, creating a spectrum between trust-minimized markets and admin-managed lending venues
  • Uses a pool-specific backstop module funded by BLND:USDC LP deposits as first-loss capital for bad debt and as a control layer that can push pools Active, On Ice, or Frozen
  • Prices borrowing with a three-leg utilization curve plus a reactive rate modifier and optional utilization caps for collateral-like assets
• Key claims:
  • The Blend whitepaper calls the protocol a “liquidity protocol primitive” that enables permissionless creation of isolated lending pools rather than one protocol-wide market
  • The docs say standard pools are immutable after deployment, while owned pools let a delegated address modify most pool parameters but not the oracle address or backstop take rate, which makes pool-type choice an important governance surface
  • The whitepaper and docs describe each pool’s backstop module as first-loss capital that absorbs bad debt, auctions holdings to cover losses, and helps govern whether a pool remains Active, goes On Ice, or becomes Frozen
  • The whitepaper says pool creators choose supported assets, acceptable LTVs, target utilization rates, and price oracles, so underwriting authority moves to the deployer/backstop layer rather than a single protocol risk committee
  • Blend’s interest-rate model uses a reactive rate modifier that accumulates utilization error over time, making capital-efficiency tuning an endogenous control loop instead of a purely static slope table
  • Utilization caps on collateral-oriented assets are explicitly positioned as protection against oracle instability or collateral exploits, which shows Blend treats asset-specific borrowability controls as a first-class safety surface
• Whitepaper: Blend maintains an official whitepaper in docs and GitHub; the strongest current source snapshot is ../whitepapers/blend-capital-primary-sources-2026-05-08.md, and a local copy of the public whitepaper markdown was saved as ../whitepapers/blend-whitepaper.md.
• Sources:
  • https://blend.capital/
  • https://docs.blend.capital/
  • https://docs.blend.capital/blend-whitepaper
  • https://docs.blend.capital/blend-whitepaper.md?ask=How%20does%20Blend%20use%20isolated%20pools%2C%20owned%20vs%20standard%20pools%2C%20and%20the%20backstop%20module%20to%20segment%20risk%20and%20govern%20pool%20control%3F
  • https://docs.blend.capital/blend-whitepaper.md?ask=What%20interest-rate%20and%20utilization-control%20mechanisms%20does%20Blend%20describe%2C%20including%20rate%20modifier%2C%20target%20utilization%2C%20and%20utilization%20caps%3F
  • https://docs.blend.capital/pool-creators/pool-management.md
  • https://docs.blend.capital/users/backstopping.md
  • https://docs.blend.capital/pool-creators/adding-assets/interest-rates.md
  • https://docs.blend.capital/pool-creators/adding-assets/risk-parameters.md
  • https://github.com/blend-capital/blend-contracts
  • https://github.com/blend-capital/blend-contracts-v2
  • https://raw.githubusercontent.com/blend-capital/docs-v2/main/blend-whitepaper.md

Internal linkages

• Best anchors: compound, morpho, and b-protocol.

• Last reviewed: 2026-06-04 UTC