Margin Fi
A decentralized liquidity aggregation and lending protocol on Solana enabling multi-asset borrowing and lending with robust risk management.
Overview
Marginfi v2 is a decentralized liquidity aggregation protocol built on the Solana blockchain. It enables users to access multiple lending markets through a unified platform, supporting assets such as SOL, USDC, USDT, wBTC, ETH, and BONK. The protocol pools liquidity from various sources to offer competitive interest rates for lenders and lower borrowing costs for borrowers. Marginfi's architecture centers around marginfi groups, which manage lending pools composed of multiple banks, each with its own mint and oracle feeds. This design allows users to borrow and lend across up to 16 assets simultaneously within a single marginfi account, providing flexibility and efficient liquidity management.
The protocol incorporates a deterministic and transparent risk management system that operates at the marginfi group level. Each bank defines its own risk parameters, including loan-to-value ratios and asset isolation to mitigate contagion risk. Real-time risk monitoring adjusts these parameters dynamically based on market conditions. If a user's account health falls below the required threshold, liquidation mechanisms protect the overall pool integrity. Marginfi plans to expand functionality with cross-composing features to enable asset trading within the platform, further enhancing liquidity and investment opportunities.
Developers can integrate with Marginfi by compiling the protocol's Rust-based programs targeting Solana's Sealevel Virtual Machine (SVM). The project requires an x86_64 architecture for compatibility. Comprehensive testing suites and verifiable builds are provided, including integration tests and Ellipsis Labs verifiable build support. Marginfi's modular design and use of custom oracles (currently Pyth, with Switchboard support planned) make it a flexible infrastructure component for DeFi applications on Solana.
The Problem
DeFi users and developers face fragmented liquidity across multiple lending markets on Solana, leading to inefficiencies and higher borrowing costs. Managing risk and exposure across diverse assets is complex without a unified platform. Additionally, real-time risk assessment and transparent liquidation mechanisms are often lacking or opaque.
The Solution
Key Features
Marginfi Groups and Lending Pools
Core components that organize liquidity and risk management, enabling efficient pooling and distribution of assets.
Marginfi Accounts
User accounts that support multi-asset borrowing and lending with continuous health factor updates.
Deterministic Risk Engine
Automated system that evaluates account health using asset prices, volatility, and liquidity metrics to trigger liquidations if necessary.
Key Strengths
How Developers Use Margin Fi
Multi-Asset Lending and Borrowing
DeFi developers can build applications that allow users to efficiently borrow and lend multiple assets through a single Marginfi account.
Risk-Aware Liquidity Provision
Financial institutions can contribute liquidity to lending pools with transparent risk parameters and real-time monitoring to optimize returns.
Cross-Asset Trading and Composing (Future)
Marginfi plans to enable cross-composing features allowing users to trade between assets within the platform, enhancing liquidity and investment strategies.
Works Well WithSolana
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Pricing
Open Source | |
|---|---|
| Price (Monthly) | Free |
| Price (Annual) | Free |
| Messaging | N/A |
| Support | Community support via GitHub |
| Analytics |
Resources
Marginfi v2 provides comprehensive developer resources including detailed guides, integration tests, and verifiable builds to facilitate secure and efficient development on Solana.