Alex from Script3 provides a comprehensive overview of Blend, a liquidity protocol primitive on Stellar that enables permissionless lending markets with flexible parameters, backstop insurance modules, and multiple integration points for developers building on Soroban.
Alex from Script3 explains Blend, a liquidity protocol on Stellar that allows entities to create over-collateralized lending markets with customizable parameters and automatic insurance via backstop modules. Blend V2 currently has 17 million TVL with support for USDC, USDT, and real-world assets like etherfuse. The protocol consists of four core contracts: the emitter (manages BLEND token and backstop), backstop module (holds insurance deposits and controls pool state), pool factory (deploys pools), and individual pools (provide lending/borrowing). Developers can integrate via backstop deposits or pool interactions, with tools including a Rust SDK, JavaScript SDK, and open-source auctioneer bot. Key safety considerations include verifying pool assets, backstop capitalization, risk parameters, oracle reliability, and admin trustworthiness. Examples of successful integrations include fee vaults, backstop managers, and the Orbit Protocol for decentralized stablecoins.
