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Marinade Borrow Is Live: USDC or SOL Against Staked SOL

Marinade Borrow is open: borrow USDC or SOL against stake accounts, mSOL, or SOL without unstaking first. The loan runs on Kamino or Jupiter Lend. Rates are variable, and positions can be liquidated.

SOLANA·HUB Editorial
Source: Marinade

What Happened

Marinade has opened Borrow. The official account announced it on October 8; the explainer in the app is dated October 7. Users can borrow USDC or SOL, backed by SOL that is already staked: native stake accounts, mSOL, or SOL in the wallet. There is no need to unstake first. There is no fixed term. Part or all of the loan can be repaid at any time.

Collateral stays staked and keeps earning staking rewards while it backs the loan. How liquid staking works on Solana is covered in Liquid staking on Solana.

How a Loan Is Opened

The amount is entered in the Marinade app, via Portfolio and “Borrow” or directly at app.marinade.finance/borrow. Collateral and the loan-to-value ratio (LTV) are calculated from what the wallet holds. A different LTV is possible, within what the wallet holds and what the market allows.

Collateral is drawn in this order: idle mSOL first, then stake accounts the user manages, then Marinade staking positions, then SOL in the wallet. Only the amount the loan needs is converted to mSOL.

Each loan opens on Kamino or Jupiter Lend, whichever offers the better borrow rate at the time, and is managed in the Marinade app. Loans opened directly on Kamino or Jupiter Lend show up in the app. For SOL or USDC loans backed by mSOL, users can borrow more, repay, deposit, and withdraw from there. Other collateral pairs are visible for now. Marinade says they will be manageable in the app later.

Variable Rates and Liquidation

Rates are set by the lending market and are variable. A position can be liquidated if LTV crosses the market’s threshold. Marinade describes the difference this way:

  • A SOL loan against mSOL has both sides priced in SOL. mSOL gains on SOL as it earns rewards. LTV still creeps up slowly as interest accrues, rather than through a drop in the SOL price.
  • A USDC loan carries price risk. If SOL falls, LTV rises. By default a new loan opens at half the market’s liquidation LTV. Marinade writes that this gives SOL room to drop about 50 percent before liquidation. Raising the LTV, or borrowing close to the maximum, leaves less room, because the wallet then does not hold enough collateral to open at the default. The position screen shows the exact liquidation price.

That is a description of the product, not a recommendation to open a loan or to pick a particular LTV.

Note: This is reporting, not investment advice.

What to Watch

  • What rates Kamino and Jupiter Lend show for these markets in practice
  • When Marinade makes other collateral pairs manageable directly in the app

Sources

#marinade #lending #staking #kamino #jupiter

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