Marginfi

Introduction

Marginfi is a decentralized lending and borrowing protocol on Solana that supports collateralized loans, leverage strategies, and cross-protocol risk management. It's designed to give users more control over their capital while maintaining safety and flexibility across DeFi.

Users can deposit tokens to earn interest or borrow other assets using their deposits as collateral. The protocol supports leverage and composable strategies, allowing positions to interact across different DeFi applications on Solana. All positions are tracked in real time, with a focus on maintaining solvency through active risk monitoring and transparent parameters.

Marginfi uses a unified account model that simplifies complex strategies while keeping user positions isolated and secure. Traders can build advanced setups, rotate capital efficiently, and interact with Solana-native apps through a single margin account.

Whether you're lending, borrowing, or using leverage, Marginfi offers a secure, integrated system for managing capital with speed, precision, and transparency

Key Features

Real-Time Risk Engine

Marginfi monitors every account with a risk engine that checks prices and position health continuously. Price feeds come from confidence-weighted oracles, and the system updates multiple times per minute.

Liquidations are fast and automatic, handled by bots that reduce bad debt. This keeps the platform solvent and responsive during volatile market conditions.

Global and Isolated Markets

Users can choose between a global margin account or isolated setups for specific assets. The global account pools collateral and borrowing power, making it easier to manage multiple strategies from a single position.

Isolated accounts limit exposure and are better suited for newer or volatile assets. Both modes run in parallel, giving users flexibility without adding complexity.

Liquid Staking as Collateral

You can use liquid staked SOL as collateral without losing staking yield. Marginfi supports assets from providers like Jito and Blaze, letting you borrow against them while rewards continue to accrue.

This creates more capital efficiency without forcing users to unstake or move assets. It's a simple way to unlock liquidity while keeping your staking strategy intact.

Leverage Tools

Marginfi offers built-in leverage through tools like mrgnLoop and Arena. mrgnLoop automates leveraged yield farming with minimal input, while Arena gives users a platform for active, higher-risk trading strategies.

These tools work directly with the margin account system. Users can scale into or out of positions without manual rebalancing or complex steps.

Multi-Asset Support

The platform supports a wide list of tokens, including SOL, USDC, USDT, ETH (wrapped), BTC (wrapped), and several liquid staking tokens. Assets are added based on liquidity, demand, and community governance.

Each asset has its own risk settings to prevent cross-contamination. Marginfi keeps its supported assets aligned with usage across Solana's ecosystem.

Security-Focused Development

Marginfi is open-source, fully audited, and governed by a multisig using Squads. Core contracts have undergone security reviews, and the team runs an active bug bounty program to catch issues early.

Key functions are protected by strict upgrade paths and access controls. It's built to support serious use with a cautious, layered approach to protocol safety.

Developer Tooling

The protocol provides SDKs in TypeScript and Rust, along with CLI tools and integration support. Builders can tap into the margin system to create new apps or connect existing platforms.

Marginfi also offers grants for teams looking to build on top of its infrastructure. It's made to be composable and developer-friendly from the ground up.

How It Works

After connecting a Solana wallet like Phantom or Solflare, users can deposit supported assets into the protocol. These assets can be borrowed against or used to earn yield.

Collateral requirements are enforced by a real-time risk engine that tracks position health. If a user's position falls below a safe threshold, third-party liquidators act automatically. Leverage tools allow users to borrow, loop, and reinvest through smart contracts, all while maintaining asset control.

Why It Matters (for Solana Users)

Marginfi plays a central role in Solana's DeFi stack. Borrowers gain flexible access to capital, lenders earn yield from high-performance collateral, and stakers get liquidity without missing out on rewards.

It addresses gaps in DeFi by introducing sophisticated risk management, composability with other protocols, and simple interfaces for complex strategies. Its growing use reflects demand for secure, scalable credit markets on Solana.

How to Use It

Step 1: Set Up a Solana Wallet

Use wallets like Phantom, Backpack, or Solflare. Make sure to fund your wallet with SOL to cover transaction fees.

Step 2: Visit MarginFi's App

Go to app.marginfi.com. Click Sign In > I'm a Solana user, and select your preferred Solana wallet.

Step 3: Make a Deposit

After connecting your wallet, you should be able to make a deposit. Choose a supported asset (e.g., SOL, USDC, mSOL). Enter the amount to deposit and confirm the transaction in your wallet.

This collateral enables you to lend or borrow, or stake and earn interest.

Step 4: Stake and Earn Instantly

After depositing, if you want to stake, go to the “Stake” tab. Click on Stake, and select the asset you want to stake. Select the token > set the amount, and click on Stake.

Step 5: Monitor Your Position

You can monitor your position on the "Portfolio" tab. Repay loans or withdraw assets as needed.

Milestones