Earn 7.5% APY staking with Solana Compass

Help decentralize and secure the Solana network delegating your stake to us and earn an impressive 7.5% APY yield on your SOL, while supporting us to create new guides and tools. Learn more

Stake your SOL

  1. Click to connect your wallet
  2. Enter the amount you wish to stake
  3. Kick back and enjoy your returns
  4. Unstake from your wallet or our staking dashboard

Earn 7.5% APY staking with Solana Compass

Help decentralize and secure the Solana network delegating your stake to us and earn an impressive 7.5% APY yield on your SOL, while supporting us to create new guides and tools.

Learn more

MarginFi

Marginfi is an innovative decentralized lending protocol that operates on the Solana network.

Unlike traditional financial lending systems, Marginfi offers a permissionless suite of smart contracts, offering users transparent, efficient, and flexible borrowing and lending services. With its robust risk management system and integration with third-party protocols, Marginfi presents itself as a reliable and secure DeFi solution.

👉 Start Lending and Borrowing on Marginfi

How Marginfi Works

Marginfi's operation revolves around its smart contracts deployed on the Solana blockchain. As a permissionless protocol, users interact directly with these smart contracts to borrow or lend assets. There are no intermediaries, creating a decentralized financial ecosystem where services are accessible to anyone, regardless of their geographical location or financial status.

How to Borrow and Lend on Marginfi

To lend on Marginfi, users need to deposit their assets into the protocol's liquidity pools. These pools power the loans taken out by borrowers. In return, lenders earn interest and receive mrgn points, a new form of reward introduced by Marginfi.

Borrowing from Marginfi involves providing collateral, which is generally in the form of crypto assets. The amount you can borrow depends on the collateral factor of the deposited asset. Users should note that if the value of the collateral falls below a certain threshold, the platform may initiate a liquidation to protect the lenders.

Rumors Surrounding the $MRGN Token

With the growing anticipation of a new airdrop season on Solana, many are speculating that Marginfi may release its own native token, tentatively dubbed $MRGN. While the platform has not confirmed this, the recent introduction of mrgn points and their focus on rewarding ecosystem contributors adds fuel to the speculation.

Marginfi's Loyalty Points Campaign

Recently, Marginfi introduced a loyalty point campaign to incentivize user participation. Users can earn mrgn points by lending assets, borrowing assets, or referring new users to the platform. Notably, while lending earns 1 point per dollar per day, borrowing earns 4 points for the same amount, encouraging active borrowing within the ecosystem.

Uses and Strategies for Marginfi

Marginfi's flexibility and integration with other DeFi protocols enable various strategies for users. For instance, users can engage in 'looping' where they deposit assets like mSOL, borrow SOL, and then lend the borrowed SOL back into the platform for extra yield.

Users can also engage in pair trades, such as longing SOL vs ETH or BTC. This is a more sophisticated strategy and involves a higher level of risk, but it allows users to hedge their positions and potentially earn higher rewards.

Lastly, users can borrow stablecoins like USDC and USDT. They may do this to long more SOL - effectively making a leverage trade - or to use the borrowed stablecoins to hedge their positions.

In conclusion, Marginfi is positioning itself as a key player in the DeFi space with its user-friendly platform, robust risk management system, and loyalty point campaign. Whether you are a seasoned DeFi user or a newcomer, Marginfi offers a versatile platform to maximize your capital efficiency while contributing to the broader DeFi ecosystem.

👉 Start Lending and Borrowing on Marginfi