Lend
What are the benefits of lending assets on Backpack Exchange?
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.
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?
Go to the Lend section at the top of your screen
Select the asset you wish to lend, specify the amount, and click Lend.
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?
First, make sure the auto-borrow feature is turned off.
Go to the Lending page, select the corresponding token, click Lend, then click Redeem.
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 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.
The staking APY varies depending on the total amount of SOL staked. Rewards are typically distributed every Friday, based on the on-chain epoch schedule. If the current epoch hasn’t ended by Friday, those rewards will roll over and be included in the following week’s distribution.
To start earning, simply enable the Auto Lend feature. Your SOL will automatically be staked—no extra steps required. And just like with USD, your staked SOL can still be used as collateral, giving you the benefit of earning rewards while keeping your assets active for trading or margin use.
Earn extra USD lending rewards
The additional yield on Backpack’s stablecoin comes from returns generated by our internal stablecoin pool. When you deposit fiat, USDC, or other supported stablecoins (like pyUSD in the future), your assets are automatically converted to Backpack USD at a 1:1 ratio.
Backpack USD is an internal unit of account used exclusively within the Backpack Exchange and isn’t directly withdrawable. It serves two key purposes:
A smoother user experience: It enables instant, fee-free conversions between fiat and USDC, with no manual steps required.
Sharing stablecoin yield: It redistributes the earnings typically kept by stablecoin issuers—such as staking rewards or on-chain yield—back to the user.
The extra stablecoin APY is distributed monthly.
To earn, simply enable the Auto Lend feature. Your USD will start earning interest automatically, with no further action needed. Best of all, your lent USD can still be used as collateral—so you’re earning yield while maintaining trading utility.
Last updated