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.

Short answer: Marginfi is a non-custodial lending protocol on Solana. Users deposit assets into markets and earn variable interest, or post collateral to borrow other tokens without selling. If the minimum collateralization ratio breaks, the position is liquidated. Smart-contract, liquidation, and market risks apply.

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