In July 2023, a marginfi intern mentioned the firm’s plans to implement a points system, hinting at an upcoming airdrop.

Before looking at the potential airdrop, let us dive deeper into the marginfi Protocol and its services. 

(Also read our main articles: Ultimate Guide to Solana Airdrops 2023 – 2024 and 10 Potential Crypto Airdrops to Watch Out For in 2024)

marginfi Protocol Introduction

marginfi (yes, the creator intended for an all-lowercase name) is a decentralized protocol developed by MRGN, Inc., co-founded by Edgar Pavlovsky and MacBrennan Peet, in 2021. 

It aims to offer “a safe and reliable solution for users looking to access leverage and maximize capital efficiency.”

Within the marginfi ecosystem, an “overcollateralized” borrow and lend protocol named mrgnlend is embedded. This allows marginfi users to borrow and lend crypto, aside from the swap, stake, and bridge features. 

Compared to traditional lenders, marginfi is of course utilizing blockchain technology and is built on smart contracts. This means that there are no intermediaries or middlemen between the user and the platform—allowing direct access to marginfi’s services. 

“This departure from traditional infrastructure means that the protocol’s services are entirely open for public use, with no ability to restrict who can use them,” the protocol explained. “Inspired by the decentralized finance movement more broadly, this is a departure from traditional financial services, which typically restrict access based on geography or wealth status and favor the elite and privileged.”

Meanwhile, marginfi highlighted its advantages over other lending protocols by having “sophisticated risk management systems.” 

Users can also unify their on-chain portfolios and access other DeFi services, as per marginfi:

“A unique feature of marginfi’s lending architecture is that it supports as collateral non-tokenized trader positions on underlying, third-party trading protocols (e.g. DEXs). This allows traders to unify an entire DeFi portfolio across a blockchain ecosystem within marginfi in a way that is manageable, safe, and capital efficient.”

marginfi Features

Users can swap tokens, lend and borrow crypto, stake $SOL, lock crypto to earn, and access a crypto-focused AI chatbot Omni. 

• To swap tokens, go to https://app.marginfi.com/swap, choose the ingoing and outgoing tokens and the desired amount to be swapped.
• To lend or borrow crypto, go to https://app.marginfi.com/, choose if you are to “Lend” or “Borrow,” choose the pool or crypto, and type in the desired amount. 
• To stake $SOL, go to https://app.marginfi.com/stake, and type in the desired amount to be staked. 
• To bridge assets, go to https://app.marginfi.com/bridge, choose the ingoing and outgoing tokens and their blockchains, then type in the desired amount. 
• To lock crypto and earn, go to https://app.marginfi.com/earn, choose the token, and type in the desired amount. 
• Meanwhile, to access Omni, the user must deposit 10 $USDC to marginfi first. 

Note: the user must first connect their Solana wallet to be able to execute activities on the platform.

marginfi Airdrop Guide

As mentioned earlier, a points system has been implemented by marginfi. Users can earn points through ‌using the borrow and lend features and referrals. 

“Points provide a quantitative answer to the question of how much a user has contributed to the mrgn ecosystem’s success,” the protocol explained. 

For lending, every $1 lent is one point per day. This means that it is not just about the greater the amount lent, the greater the points, but also the longer the user lends their asset, they will earn more points. 

Meanwhile, according to marginfi, borrowing is the main driver of its ecosystem, thus, giving those who borrow four points per day for every $1 borrowed. 

Lastly, users can earn points through referrals. A referring user will get 10% of the points the users they refer earn.

Where will the points system be used? Well, it is still not that clear for now. 

For many, the points system will be used as a basis for rewards once the protocol launches its own native token. While some speculate for an exclusive airdrop. 

This article is published on BitPinas: Marginfi Airdrop Guide, Strategy, and Points System Explained

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