Missed $JTO and $JUP token airdrop? Don’t worry. Many other opportunities are awaiting. We are in the Solana season, and there are still many tokenless blockchain protocols on the Solana ecosystem, that could airdrop tokens next. On our blog, we are going to discuss all of them, one by one. First of all, the one tokenless protocol with the highest TVL – MarginFi Finance.
Marginfi Finance is a decentralized lending protocol on the Solana blockchain, offering advanced risk management and a permissionless suite of smart contracts for users seeking leverage and capital efficiency. It stands out in the DeFi space for its emphasis on risk transparency and its ability to integrate with third-party protocols. This protocol enables users to unify their on-chain portfolios and access a broad range of DeFi services securely and efficiently.
Now that you have some idea about MarginFi, let us talk more about MarginFi in detail, before we hop on to the step-by-step MarginFi airdrop guide.
Disclaimer: There is no official announcement by MarginFi Finance team, but we believe there are high chance there will be one. Also remember, whatever I am mentioning in this guide is just for educational purposes. There are always multiple risks with airdrops, mainly smart contract risks. Always be mindful of the risks and only invest what you can afford to lose.
What is MarginFi Finance?
MarginFi is a liquidity staking platform on the Solana blockchain with a TVL of 469M USD (as of 9th Feb 2024). The TVL, number of users using the protocol is rising every day, with users anticipating upcoming Marginfi Airdrop.
With MarginFi, you can lend, stake, swap, bridge. The swap feature is powered by Jupiter Finance, while the bridge is powered by Mayan.
Marginfi Finance differentiates itself from traditional and other decentralized protocols by being a fully permissionless system built on blockchain technology, specifically on Solana. This setup eliminates intermediaries, allowing direct access to its services.
Well, there may be geographical restrictions based on the different laws of nations, but Marginfi is open to all otherwise, promoting inclusivity in the financial sector.
The tokenless protocol is designed to be immutable, ensuring that no single party can alter its operations outside the established governance framework. This approach not only enhances security but also fosters trust among users.
Key Features of MarginFi Finance
- Decentralized and Permissionless: Operates on smart contracts, providing direct and unrestricted access to its services.
- Advanced Risk Management: Emphasizes risk transparency, helping users understand and manage their risks effectively.
- Integration with Third-Party Protocols: Allows users to unify their DeFi portfolios across various services on the blockchain.
- Immutability: Designed to be non-upgradeable, preventing any unilateral changes to the protocol’s behavior.
- Accessibility: Unlike traditional finance, Marginfi does not impose geographical or wealth-based restrictions, making it accessible to a broader audience.
Why do we think MarginFi Finance Airdrop is happening?
3 reasons we think the MargingFi Finance airdrop is happening:
- MarginFi is tokenless.
- MarginFi is one of the top protocols (3rd highest) with growing TVL in the Solana ecosystem
- MarginFi has introduced points.
- MarginFi is backed by top investors: MarginFi has successfully raised $3 million in a seed funding round, with notable investors like Multicoin Capital, Pantera Capital, Sino Global Capital, and Solana Ventures.
MarginFi Airdrop Prerequisites
To participate in the MarginFi Finance airdrop, you need a Solana wallet and some Solana on that wallet (based on your risk appetite).
I recommend Phantom Wallet and starting with 5 SOL (however, there is no lower or upper limit)
However, the more SOL you stake, the higher the chances of ending up in the top tier.
MarginFi Airdrop Guide: How to Farm for $MRGN (Margintrade Finance) Step by Step
MarginFi has introduced a points system, and there could be different tiers for eligible crypto investors.
To be eligible for $MRGN airdrop, the more points you have, the higher the chances. In this MarginFi airdrop guide, we will discuss how you can earn more points doing simple tasks.
Follow our guide properly so that you do not get liquidated.
Let’s get started.
Click here to start the process (Referral link to support our content)
Lending on MarginFI: Your Easy Points Earner
First up, lending. If you’ve got some assets lying around, why not put them to work? On MarginFi, every dollar you lend earns you 1 point per day. It’s like a points-earning marathon – the longer and more you lend, the more points you gather. And the best part? You’ve been earning these points all along, even if you didn’t realize it!
You can lend mSOL, JitoSol, Bonk, bSol, SOL, ETH, WBTC, LST, Pyth, bSol, Dust, stSol, and stablecoins like USDC, USDT, UXD and earn APY. APYs are marginal but do remember, we are doing this not to earn interest, but to farm for the upcoming airdrop. Just for the information, UXD is providing the highest APY of 26.93%. For every dollar you lend, you get 1 point.
Borrowing: The Points Jackpot
Now, let’s talk about borrowing. This is where things get interesting. Borrowing is like hitting the points jackpot on MarginFi. For every dollar you borrow, you earn a whopping 4 points per day. And guess what? The collateral you put down for the borrow counts as lending, so you’re scoring points on both fronts. It’s a win-win!
You can borrow the same assets mentioned above.
Referrals: Share the Love, Earn the Points
Referrals are your secret weapon for points. When you refer someone to MarginFi, you get 10% of the points they earn. And it gets better – if your referrals start referring others, you earn 10% of those points too. It’s like a points pyramid, and you’re at the top!
However, you can only refer, if you are yourself earning MarginFi points. I have created by referral link too, and if you think this guide was useful, feel free to use my referral link: Link to MarginFi Protocol.
Bonus Step #1 – Staking
Stake SOL and earn LST, MarginFi’s liquid staking token. Though staking will not add to the points, however, I feel those who would be staking SOL on MarginFi will be eligible for higher rewards. You can also earn 7.63% APY (currently), which is expected to lower with more staking.
Bonus Step #2 – Swap
Use MarginFi dex to SWAP cryptocurrencies across the Solana blockchain.
Bonus Step #3 – Bridge
Use the bridge feature to swap one crypto asset to another cross-chain, or simply move from one chain to another.
Final step: Points Claiming
Follow and claim your points regularly (once a week).
To reduce the likelihood of liquidation in your crypto dealings, it’s advisable to focus on stablecoins or stick to a specific type of coin. Engaging in both supplying and borrowing different stablecoins can significantly lower your risk of liquidation due to their inherent price stability.
Similarly, if your transactions involve lending and borrowing assets like SOL, mSOL, or bSOL, you benefit from the liquidation price being aligned with the SOL price, which in turn decreases the risk of liquidation.
It’s also crucial to regularly monitor your account health. This metric is an essential indicator of your potential risk of liquidation – the higher the number, the safer your position. Keeping a vigilant eye on this measure can help you maintain a more secure and stable standing in your cryptocurrency activities.
How much money can you make with MarginFi Finance Airdrop?
To be honest, since there is no official announcement, it is difficult to predict.
The higher the number of users participating, the lower the rewards get. However, you can still expect somewhere between 100USD to 200USD by being in the lowest tier (just an assumption), 201USD to 500USD by being in the second lowest tier, 501USD to 1000USD for the middle tier, and more than 1000USD if you can get into one of the top tiers.
Also, remember, that there could be smart contract risks when interacting with MarginFi finance protocol. Fund only what you can afford to lose.