Lending
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:
Enable the Auto Lend feature in your Backpack account.
Your SOL will be automatically staked—no manual steps needed.
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.
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:
Smoother User Experience Enables instant, fee-free conversions between fiat and USDC, with no manual steps required.
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:
Enable the Auto Lend feature in your account settings
Your USD will automatically start earning interest, no further action needed
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?
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.
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?
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?
Click “Lend” to enter the Lending page.
Select the corresponding token.
Under the “Models” tab, click “Interest.”
You will then see the utilization rate for that token.
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