# 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**.
3. Enter the **amount** and **confirm.**
**Faster option**
Turn on **Auto-Lend** to automatically lend available balances and start earning interest without manual steps.
***
### 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
**Faster option**
Turn on **Auto-Lend** to automatically lend available balances and start earning interest without manual steps.
***
## 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**.
***
## 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.**
***
## Frequently Asked Questions
What are the benefits of lending assets on Backpack Exchange?
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.
How can I redeem my lended assets on Backpack exchange?
#### **Redeem Assets on the Web**
1. First, make sure the auto-borrow feature is **turned off.**
2. Go to the Lending page, select the corresponding token, click Lend.
3. **Click Redeem.**
4. Enter **the amount** you wish to redeem and confirm the transaction.
#### **Redeem Assets on Mobile**
1. First, make sure the auto-borrow feature is **turned off.**
2. Select the asset (e.g. Monad), then tap the APY rate under **Lend APY** **(e.g. 13.09%)**
3. **Click Redeem.**
4. Enter **the amount** you wish to redeem and confirm the transaction.
How do I check the Utilization Rateof a lending pool?
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.
{% hint style="info" %}
### **👉**[**Learn more about Lending**](https://app.gitbook.com/s/ZRzI8k3y3P5zqjPLRxSx/borrow-and-lend/lending)
{% endhint %}
