Lending

Lending¶

Lending protocols on Solana allow users to deposit assets to earn interest, or borrow other tokens by collateralizing assets.

Major Protocols¶

• Marginfi: Decentralized lending
• Kamino Lend: Automated lending strategies
• Solend: Established lending protocol

Lending Mechanism¶

Deposits Supply assets to earn interest.

Borrowing Collateralize assets to borrow, paying interest.

Liquidation Forced position closure when health factor is too low.

Related Concepts¶

• Collateral Ratio (LTV): Loan-to-Value ratio
• Liquidation: Forced closure mechanism
• Interest Rate Model: Dynamic interest rate calculation