Backpack has introduced a borrow lending margin system that maximizes capital efficiency for traders on the Exchange.
Lend allows you to earn a yield on 100% of your eligible holdings while also using the same lent assets to open positions. Unrealized gains are automatically cycled back into the Lending pool to generate further yields.
- Lenders earn yields by providing liquidity to the Borrow markets. When they supply assets to the Lending pool, they receive interest paid by borrowers who use the assets.
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How to automatically earn yield (Auto Lend setting)
Auto Lend allows you to automatically lend available balances without manually opening positions.
- Go to the Lend tab in the top navigation bar
- Locate the Auto Lend option
- Turn on Auto Lend
Once enabled:
- Your eligible assets may be automatically supplied to lending markets
- You can start earning yield without additional steps
- Your assets remain available as collateral for trading
How to manually open Lend positions
Users will typically have Auto Lend activated, which automatically places your unutilized collateral in the Lending pool to generate yields.
To manually lend, you will need to turn this setting off in Cross Margin Overview and click the lightning icon. Once it has been disabled, you can manually open lend positions.
- Navigate to the Lend tab
- Select the asset you want to lend and click Lend
- Enter the amount and confirm.
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