Solana Unveils New Liquidity Layer: Redefining DeFi with marginfi

Solana has welcomed marginfi, a liquidity protocol to power its innovative community.
Solana remains a major destination for top builders in DeFi and memecoin ecosystem.

On Wednesday, Solana Blockchain introduced marginfi as its first Liquidity Layer. Through the platform, Solana aims to power a new Layer for Decentralized Finance (DeFi) performance.

How marginfi Works

marginfi describes itself as the first Layer with real native yield, off-chain data plug-ins, and embedded risk systems. As an integrated liquidity layer on Solana, marginfi enables traders to access liquidity without bridging.

Introducing Solana’s first Liquidity Layer

We’re excited to announce the evolution of marginfi: powering a radically new Layer for Performant DeFi

Here’s how we’re changing the game 👇 pic.twitter.com/I6rt0xD3wc

— marginfi ◼️ (@marginfi) May 15, 2024

Essentially, the platform gives Decentralized Applications (dApps) such as trading, indexing, and payment the required rails to function. These dApps automatically compound users’ balances, ensuring they don’t lose value to inflation. Also, rewards from marginfi will be earned on top primitives that the dApps rest upon.

Developers can directly plug into $600 million of liquidity, access over 450,000 accounts, and plug into a variety of supporting on and off-chain tooling. Users and developers of marginfi can earn integrated, native yield through natural staking using LST token, native token yield via mrgnlend, and native stable asset yield through YBX token.

It is worth noting that all developers can build on mrgnlend, Solana’s highest-yielding lending dApp, YBX, marginfi’s integrated LST-backed stablecoin, and mrgnswap, crypto’s first integrated-stable swap (2024).

While Ethereum Layer 2 solutions act as a fundamental vampire attack on ETH, marginfi does not act in the same manner as Solana. With marginfi, teams can easily copy and paste codebases from one L1/L2 to another.

marginfi hopes to utilize bundles to ensure users are protected as it looks towards expanding its liquidation network, flash loan features, and stableswap liquidity.

marginfi Gets Support

The platform is built by a team united by deep convictions on the transformation of finance. So far, marginfi has raised $8 million in its lifetime, with support from investors like Split Capital, Jito Labs, Santiago R Santos, and many others.

marginfi is already live and everyone who participates in mrgnlend, LST, YBX (soon), and mrgnswap (2024) are eligible for rewards. However, early members get more points based on how much they deposit and who they invite to the platform.

Markedly, Solana has emerged as a prominent player in the DeFi space. On May 10, Solana recorded a trading volume of $1.3 billion on its DEX, eclipsing Ethereum’s $1.29 billion, as previously reported by Crypto News Flash.

Solana’s rise in DEX trading volume indicates its growing prominence in DeFi. In the past few months, Solana has received attention from memecoin enthusiasts, leading to notable increases in the value of tokens like DogWifHat and Bonk.

Per reports from Crypto News Flash, the Solana community celebrated a new milestone following an announcement from CoinGate on the integration of SOL for seamless merchant transactions.

Notably, SOL is currently riding this many bullish news to trade at $162.63, representing an increase of 5.9% in the last 24 hours. The trading volume also increased by 26.9% to $3.8 billion.