# Lending

## **How can I earn interest on my assets?**

### Earn Interest on the Web

1. Go to **Lend** in the top navigation bar.
2. Select the asset and click **Lend**.

<figure><img src="/files/4kt10KqsFuGAxslxDF9y" alt=""><figcaption></figcaption></figure>

3. Enter the **amount** and **confirm.**

<div align="left"><figure><img src="/files/3H6Mm8UysysRvIUlVQh9" alt="" width="329"><figcaption></figcaption></figure></div>

**Faster option**

Turn on **Auto-Lend** to automatically lend available balances and start earning interest without manual steps.

<figure><img src="/files/zCazMwKNwTHjBgGkNDVF" alt=""><figcaption></figcaption></figure>

***

### Earn Interest on Mobile

1. Go to the **Earn** page
2. Find the asset you want to lend (e.g. Monad), then tap the APY rate under **Lend APY** **(e.g. 13.09%)**
3. Enter the amount and tap **Lend** to confirm

<div align="left"><figure><img src="/files/b5zUlFHTZRTr4HqLGOqk" alt="" width="563"><figcaption></figcaption></figure></div>

**Faster option**

Turn on **Auto-Lend** to automatically lend available balances and start earning interest without manual steps.

<div align="left"><figure><img src="/files/cGs7hgbjvYGgFyQl3Hj4" alt="" width="375"><figcaption></figcaption></figure></div>

***

## Earn extra SOL lending rewards

Additional earnings on Backpack come from **staking rewards**. Backpack operates a **validator on the Solana network**, and any block rewards earned through on-chain staking are **passed directly back to users**.

#### **Reward Distribution**

* **Staking APY**\
  The staking APY varies depending on the **total amount of SOL staked** on the platform.
* **Reward Schedule**\
  Rewards are typically distributed **every Friday**, based on the on-chain **Solana epoch schedule**.\
  If the current epoch hasn’t ended by Friday, rewards will **roll over** and be included in the **following week’s** distribution.
* **Source of Rewards**\
  Rewards are distributed proportionally and come from:
  * Solana’s **inflationary staking rewards**
  * **Validator block rewards**
  * **Jito MEV tips**

#### **Yield Calculation**

Yield is calculated based on a user’s share of total lending on the platform **throughout each Solana epoch**.

* The system takes **multiple snapshots** during each epoch to track:
  * How much each user has lent
  * Relative to the **total lending pool** on the platform

#### **Notes on Performance & Variability**

* This is a **best-effort distribution** of staking returns from deployed assets.
* **Actual yields may differ** from advertised rates due to:
  * Validator performance
  * Warm-up and cooldown periods of stake accounts
  * Market and network conditions during the epoch

#### **How to Start Earning?**

To begin earning staking rewards:

1. **Enable the Auto Lend feature** in your Backpack account.
2. Your **SOL will be automatically staked**—no manual steps needed.
3. While staked:
   * Your SOL continues to **earn rewards**
   * You can still use it as **collateral** for trading or margin purposes

> This gives users the dual benefit of **passive yield** and **active asset utility**.

<div align="left"><figure><img src="/files/lUzyQbPGuuZdgwI0rWj8" alt="" width="563"><figcaption></figcaption></figure></div>

***

## Earn extra USD lending rewards

The **additional yield** on Backpack’s stablecoin comes from returns generated by the **internal stablecoin pool**.

When you deposit:

* **Fiat**
* **USDC**
* Or other supported stablecoins (e.g., **pyUSD**, coming soon)

...your assets are **automatically converted to Backpack USD** at a **1:1 ratio**.

#### **What Is Backpack USD?**

**Backpack USD** is an internal unit of account used **exclusively within the Backpack Exchange**. It is:

* **Not directly withdrawable**
* Designed to **improve user experience** and **share yield benefits**

#### **Two Key Purposes:**

1. **Smoother User Experience**\
   Enables **instant, fee-free conversions** between fiat and USDC, with **no manual steps** required.
2. **Sharing Stablecoin Yield**\
   Redistributes the **earnings typically retained by stablecoin issuers**—such as staking rewards or on-chain yield—**back to users**.

#### **Yield Distribution Details**

* **Frequency**: Monthly
* **Type**: Extra APY (annual percentage yield) applied to your Backpack USD balance
* **Source**: Earnings from the platform’s internal stablecoin pool

#### **How to Start Earning?**

To earn stablecoin yield:

1. **Enable the Auto Lend feature** in your account settings
2. Your USD will automatically start **earning interest**, no further action needed
3. While lent, your USD:
   * **Continues earning rewards**
   * **Can still be used as collateral** for trading or margin—giving you both yield and utility

> **No lockups, no hidden steps—just passive yield while staying fully flexible.**

<div align="left"><figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfmPApBCBTIlKFCp5C8MHmzATRD6IG7-HH4_cD-YsbolFizWf1suL-nP4UgiKYVJBGak3DSyZ1YADCBn3BSeitW1Wqfere9hEBtl8ozROdFVCbH9UbncHq9S0K3sLbL26efmqsF?key=wuKTha0gdY6-p825UF2t6Pla" alt="" width="563"><figcaption></figcaption></figure></div>

***

## Frequently Asked Questions

<details>

<summary><strong>What are the benefits of lending assets on Backpack Exchange?</strong></summary>

1. Lending assets on Backpack Exchange allows you to earn passive yield with minimal effort. If you enable **Auto-Lend**, your assets will be continuously lent, ensuring they generate interest whenever available.
2. The interest accrues over time and **compounds**, making it an efficient way to put your idle assets to work.

</details>

<details>

<summary><strong>How can I redeem my lended assets on Backpack exchange?</strong></summary>

#### **Redeem Assets on  the Web**

1. First, make sure the auto-borrow feature is **turned off.**&#x20;
2. Go to the Lending page, select the corresponding token, click Lend.

<figure><img src="/files/5IFiQ1bHnOeCdBbCFXHY" alt=""><figcaption></figcaption></figure>

3. &#x20;**Click Redeem.**
4. Enter **the amount** you wish to redeem and confirm the transaction.

<div align="left"><figure><img src="/files/VQes22wqkVyJuEBBZzfc" alt="" width="338"><figcaption></figcaption></figure></div>

#### **Redeem Assets on  Mobile**

1. First, make sure the auto-borrow feature is **turned off.**&#x20;
2. Select the asset (e.g. Monad), then tap the APY rate under **Lend APY** **(e.g. 13.09%)**
3. &#x20;**Click Redeem.**
4. Enter **the amount** you wish to redeem and confirm the transaction.

<div align="left"><figure><img src="/files/DsTo3BJp0CFO13XCgO74" alt="" width="563"><figcaption></figcaption></figure></div>

</details>

<details>

<summary>How do I check the <a href="/spaces/ZRzI8k3y3P5zqjPLRxSx/pages/kzxKyZvxUjHI4lQDW4KE">U<strong>tilization Rate</strong> </a>of a lending pool?</summary>

1. Click **“Lend”** to enter the Lending page.
2. Select the corresponding token.
3. Under the **“Models”** tab, click **“Interest.”**
4. You will then see the **utilization rate** for that token.

<figure><img src="/files/7HFGf5svptIdcq0UFN0N" alt=""><figcaption></figcaption></figure>

</details>

{% hint style="info" %}

### **👉**[**Learn more about Lending**](/technical-docs/borrow-and-lend/lending.md)

{% endhint %}


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