Hundred Finance is a decentralized application (dApp) that facilitates cryptocurrency lending and borrowing. It is a multi-chain protocol that integrates with Chainlink oracles to ensure market stability and specializes in serving long-tail assets.

Users of Hundred Finance can lend select cryptocurrency assets and borrow against their loan-to-value ratio. They earn variable interest on the supply side and accrue it on the borrow side. Borrowing sends the desired asset to the user's wallet, while supplied tokens are represented as hTOKENS (e.g., hETH, hUSDC). These hTOKENS can be redeemed at any time for the original asset plus accrued interest.

Interest rates on Hundred Finance are automatically calculated and expressed as an annual percentage yield (APY) per token. These rates adjust based on demand for a particular asset and available liquidity, promoting market health.

Changes in asset values and interest accrual can lead to insufficient collateralization of borrowed assets. When the collateralization falls below a certain level, an account becomes vulnerable to liquidation. Liquidators claim the account's hTOKENS, plus a penalty, in exchange for repaying the debt until the collateralization ratio returns to a healthy level.

Hundred Finance has its own token, HND, which enables decentralized decision-making through governance. The distribution of HND to users based on their liquidity provision incentivizes interaction and supports the project's growth.