Hundred Finance is a decentralized application (dApp) focused on lending and borrowing cryptocurrencies. As a multi-chain protocol, it works with Chainlink oracles to support market health and stability, while concentrating on creating lending markets for long-tail assets.

With Hundred Finance, participants can lend approved cryptocurrency assets and take out loans using their loan-to-value ratio. They earn variable interest on the supply side and accrue it on the borrowing side. When a user borrows, the requested asset is transferred to the user’s wallet, and the supplied collateral is tracked there as hTOKENS (for example, hETH and hUSDC). These hTOKENS can be redeemed at any time for the underlying asset plus any accumulated interest.

On Hundred Finance, interest rates are computed automatically and shown for each token as an annual percentage yield (APY). The APY updates per block according to the demand for a specific asset and the liquidity available to meet that demand. This design motivates supplying funds when interest rises, which in turn helps sustain market health.

Hundred Finance also has its own token, HND. After the token is distributed broadly enough, HND will enable decentralized protocol decision-making via governance. Rewarding users with HND according to their liquidity provided supports engagement and helps bootstrap the Hundred Finance ecosystem.