Marginfi is a lending protocol on Solana. Users deposit assets into markets, earn interest, and can borrow other tokens against posted collateral. Everything runs non-custodially through smart contracts.

How do I earn interest with Marginfi?

You deposit a supported asset into a market, making it available to borrowers. The interest borrowers pay flows proportionally to depositors. Rates fluctuate with supply and demand in each market.

What is a liquidation?

Anyone borrowing against collateral must keep a minimum collateral-to-debt ratio. If the collateral value falls too far or the debt rises, the position can be liquidated — the collateral is then sold to repay. Leverage raises this risk.

Is lending on Solana risk-free?

No. There is smart-contract risk, liquidation risk when borrowing, and market risk. This article is explanation, not financial advice.

Marginfi explained: lending and borrowing on Solana

Lending is one of the foundational building blocks of DeFi: capital that would otherwise sit idle in a wallet can be lent out — and whoever needs liquidity borrows against collateral without selling. Marginfi is one of the well-known lending protocols on Solana for this.

In plain terms: Marginfi is a decentralized lending and borrowing platform. You put tokens in and earn interest — or you post collateral and borrow other tokens without selling your own.

How lending works

Supply: you deposit an asset into a market and earn the interest borrowers pay. Rates are variable and depend on supply/demand.
Borrow: you post collateral and borrow other tokens against it — e.g. to get liquidity without selling your holdings.
Collateral & liquidation: a minimum collateralization ratio applies. If it breaks, the position is liquidated — the collateral is sold to repay.

What to watch for

Lending looks simple but has real risks: borrowing risks liquidation if collateral loses value. Add smart-contract risk and market/rate risk. Higher leverage means higher liquidation risk.

At a glance

Marginfi is a lending protocol on Solana (lend, borrow, earn interest).
Non-custodial through smart contracts.
Borrowing carries liquidation risk; rates are variable.
MRGN is tied to the ecosystem.

Not financial advice. This article explains a DeFi protocol and its mechanics.

Sources and further reading

Marginfi — marginfi.com · Marginfi documentation
SOLANA·HUB glossary: DeFi · Liquidity Pool

DeFi on Solana — the overview (incl. lending section)
Kamino explained — lending plus automated liquidity
Jupiter explained — the swap aggregator