marginfi | Solana
The marginfi protocol allows you to do two things with your Solana crypto tokens: lend them and borrow them. You lend your tokens to earn yield on them, and borrow tokens …
Introduction
Learn about the core concepts of decentralized borrowing and lending on marginfi. On this page, we will cover key topics that you should be aware of as a marginfi user. Let's dive in!
Lending and Borrowing
The marginfi protocol allows you to do two things with your Solana crypto tokens: lend them and borrow them. You lend your tokens to earn yield on them, and borrow tokens using the tokens you've lent as collateral. This feature suite is packaged into a user-friendly application called mrgnlend.
Remember: In order to borrow tokens through marginfi, you must first supply tokens to any of marginfi's supported asset pools. This is because marginfi is an overcollateralized borrowing-lending protocol, meaning that you need to provide collateral worth more than the amount you intend to borrow.
This ensures the security and stability of the protocol by mitigating the risk of default. When you supply tokens, you are effectively contributing to the liquidity pool, making it possible for others to borrow and for you to earn yield on your supplied assets.
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