Airdrop season on Solana is in full swing—with PYTH, JITO, and JUP ringing in DeFi 2.0.
In December 2023 alone, the trading volume on Jupiter reached $16.6 billion, four times higher than the trading volume in November 2023.
And DeFi Summer on Solana doesn't seem to be slowing down any time soon, as the next airdrop token is already on the horizon: MRGN.
In this guide, we’ll explore marginfi and the MRGN governance token so you too can get prepared for Solana’s next big airdrop.
Overview
- Project: marginFi
- Token ticker: $MRGN
- Blockchain: Solana
- Sector: Decentralized Finance (DeFi)
- Business model: Lending and liquid staking
- Similar projects:
- Lending: Aave and Compound
- Liquid Staking: Lido and Rocket Pool
What does marginfi do?
Marginfi is a borrow/lend protocol on the Solana blockchain that offers you the following services:
- Lending: You can deposit your crypto into the app’s liquidity pools to become a lender. These funds are pooled together and can be utilized by other users for borrowing purposes.
- Borrowing: You can also borrow crypto by collateralizing your assets: You lock up a certain amount of cryptoassets as collateral to borrow other cryptoassets.
- Interest rates: The interest rates for borrowing and lending are algorithmically determined based on the supply and demand dynamics within the platform. Generally, as a borrower, you pay interest, while as a lender, you earn interest on your deposited assets.
In summary, marginfi offers individuals and institutions the ability to engage in financial activities without traditional intermediaries, promoting financial inclusivity and enabling a more-accessible and open financial ecosystem.
What is the MRGN token?
Similar to Aave and Compound, marginfi is looking to release a governance token.
Currently, the marginfi team is discussing the tokenomics of the protocol with its community in its forum.
As of now, this is the proposed breakdown:
- 1,000,000,000 MRGN Investors (vested tokens): 15%
- Existing and future core contributors, milestones-based (vested tokens): 20%
- Airdrop for the community: 10%
- Community DAO reserves: 52.5%
- Day 1 grant scheme for core needs: 2.5%
The community DAO reserves could include:
- Growth incentives (for liquidity providers (LPs) and protocol participants)
- Future development and operations support
- The grant program
- Anything the DAO will vote on
However, the final specifics around the MRGN token have not been communicated as of now.
How to qualify for the MRGN airdrop?
Marginfi has been running one of the first and most extensive point programs in the Solana ecosystem.
You can earn points by lending and borrowing assets and referring new users. These points are equal, but some actions have higher point-earning potential than others. For example: 1 lending point = 1 borrowing point, but 1 borrowing point can be earned with less capital.
It’s likely that marginfi will distribute MRGN tokens to you and other users based on your level of participation (eg points collected), but specific details have yet to be revealed.
When will the MRGN airdrop take place?
Compared to other protocols, both the MRGN token and MRGN airdrop have been confirmed. Additionally, we expect the MRGN airdrop to function like other ones on Solana. Generally, token rewards aren’t sent directly to your wallet; You must go to a dedicated website to claim them. Marginfi’s claim page isn’t available yet, but we’ll be sure to share it on our website, social media, and app, if and when it goes live.
⚠️ Beware: During airdrop season, scammers create imitation accounts to trick you into clicking phishing links and wallet drainers. Please exercise caution. Only click on, and visit, links from marginfi’s official Twitter account, and do not respond to direct messages from unknown parties related to the MRGN airdrop—regardless if you’re on X (formerly known as Twitter), Discord, Telegram, or other platforms.
For more on this, read our Solana Airdrops guide.
How to trade MRGN with Phantom?
- Notice: You need to hold SOL in your Phantom wallet to complete this process.
If you’re not eligible for a possible MRGN airdrop, you can buy, sell, and trade MRGN tokens with Phantom.
After logging-in to your Phantom browser extension or mobile app, select a wallet that holds the tokens you’d like to trade. Next, click on the swap (arrow) icon at the bottom. In the swap widget, select the token pair you’d like to trade, review the order, then submit!
How to set up a Phantom wallet?
If you’d like a friendly multichain wallet for crypto, DeFi, and NFTs, try us out. We offer browser extensions for Firefox, Chrome, Brave, and Edge, as well as apps for iOS and Android.
First, download Phantom. Then, create a new wallet.
If you’d like to fund, or send funds to, your Phantom wallet, you can do so via the “Buy” button on your asset tab. We offer various funding options, such as MoonPay, PayPal, and Robinhood to make it easy for you to fund your wallet.
Once you do that, you're ready to go.
How to bridge tokens to Solana with Phantom?
If this is your first time using Solana, you might have most of your assets on other blockchains, such as Ethereum and Polygon. With our Cross-Chain Swapper, you can bridge tokens across Ethereum, Solana, and Polygon right in your Phantom wallet. Here’s how:
Disclaimer: This guide is strictly for educational purposes only and doesn’t constitute financial or legal advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
