Slender is the first non-custodial lending/borrowing DeFi protocol on Stellar’s Soroban network. It uses a pool-based strategy that aggregates each user's supplied assets. Currently, the protocol supports only three markets (XRP, XLM, and USDC) but ultimately plans to expand in order to allow users to lend and borrow any asset that is supported on Soroban (including real-world assets).

Lenders provide liquidity to a market in exchange for an s-token (i.e., essentially Slender’s LP-Token). These tokens accrue interest and reflect this accrual in their “price”. Users are able to borrow assets from the protocol via an over-collateralized loan which issues them a dToken (debt token). Each borrowing market has a floating interest rate, determined by the utilization of that market's assets. Utilization is capped (default value is 90% cap) to always keep a reserve for user withdrawals. Users cannot be both lenders and borrowers of the same asset.

In addition, users can take flash loans from a market. When a flash loan is concluded, the users have a choice between paying back the loan + fee or borrowing the funds in which case no fee is charged.

For price information Slender’s plans to use SEP-40 compatible third-party oracles (e.g., reflector) and apply TWAP to the price data points in order to mitigate operator error, market volatility, and manipulation risks.