Marginfi

Marginfi is a decentralized lending and borrowing protocol on Solana that enables users to supply assets to earn interest or borrow against collateral. It has grown to become one of the largest lending protocols on Solana by TVL, attracting significant capital through competitive rates and a points-based incentive program. The protocol supports a wide range of Solana assets including SOL, mSOL, JitoSOL, USDC, USDT, and various other SPL tokens. Suppliers earn variable interest rates determined by supply/demand dynamics in each lending pool, while borrowers pay interest on their loans. The interest rate model adjusts automatically based on pool utilization. Marginfi's risk management system uses isolated risk pools and conservative collateral factors to protect lenders from bad debt. Each asset has specific collateral and borrow factors that determine how much can be borrowed against it. The protocol also maintains an insurance fund for additional protection against black swan events. The mrgnlend points program has been a major driver of TVL growth, rewarding users for supplying and borrowing activity. While the protocol token has not yet launched, the points system has attracted billions in deposits from users anticipating a future airdrop. Marginfi also offers a suite of developer tools and has been integrated into various DeFi strategies and aggregators across the Solana ecosystem.