MarginFi Official is known primarily as a lending protocol on Solana, but it has a powerful, integrated liquid staking solution that produces LST, its native Liquid Staking Token. This guide explains how to mint LST and why it's a uniquely powerful collateral asset on the platform.
Core Concept: An Integrated Ecosystem
Unlike other protocols where you stake on one platform and then find another to use your LST, MarginFi integrates both. The LST Liquid Staking Token is designed from the ground up to be the most efficient form of collateral on the MarginFi Lending and Borrowing platform.
Step 1: How to Stake SOL on MarginFi
Navigate to the Staking Page: Go to the stake tab on the app.marginfi.com platform.
Connect Your Wallet: Connect your Solana-compatible wallet.
Enter Amount: Input the amount of SOL you wish to stake.
Confirm: Execute the transaction. You will receive LST in your wallet.
You are now earning staking yield, distributed by MarginFi's intelligent delegation strategy, and also accumulating MarginFi Points.
Step 2: The Capital Efficiency Loop
This is where LST shines. Now that you hold LST:
Go to the "Lend" Tab: On the same MarginFi platform.
Supply LST: Deposit your LST as collateral. Because it's MarginFi's native LST, it typically has one of the highest collateral weightings on the platform.
Borrow: You can now borrow other assets (like USDC or more SOL) against your LST collateral at a very high loan-to-value (LTV) ratio.
This seamless loop of staking, lending, and borrowing on a single platform is a masterclass in Solana Capital Efficiency.
For a full breakdown of the risk engine and smart contracts, please refer to https://sites.google.com/koinly-tax-reports.org/marginfi-protocol/.
Top comments (0)