The Canto network is a sovereign chain built using the Cosmos SDK and custom modules.
$CANTO is the native token of the Canto network. It is used to pay gas fees for transactions and can also be to help secure the network.
Here is a high level overview of how the Canto Lending Market is governed:
Canto’s Lending Protocol is deployed on the network's native EVM (Ethermint)
Since Note cannot be created, only borrowed, and the Supply rate is the same as the Borrow rate, a new mechanism was necessary