Lend

What are the benefits of lending assets on Backpack Exchange?

1. Lending assets on Backpack Exchange allows you to earn passive income 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 earn interest on my assets?

1. Go to the Lend section at the top of your screen

2. Select the asset you wish to lend, specify the amount, and click Lend.

3. Typically, we recommend that users click the lightning icon next to the leverage multiplier to enable the auto-lending feature. This allows them to earn real-time interest on the available balance of the corresponding currency without increasing liquidation risk, thereby maximizing capital efficiency.

How can I redeem my lended assets on the Backpack exchange?

1. First, make sure the auto-borrow feature is turned off.

2. Go to the Lending page, select the corresponding token, click Lend, then click Redeem.

3. Enter the amount you wish to redeem and confirm the transaction.

How do I check the utilization rate of a lending pool?

The utilization rate of a lending pool is displayed in the Lend & Borrow Info section. It represents the ratio of total assets borrowed to the total available assets in the pool. A higher utilization rate typically results in higher interest rates for lenders and higher borrowing costs for borrowers.

Earn extra SOL lending rewards

Additional earnings on Backpack come from staking rewards. Backpack operates as 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.