The annualized interest rate paid by borrowers in a lending protocol, expressed as annual percentage yield with compounding. Borrow APY is determined algorithmically by the interest rate model based on the pool's utilization rate. On Solana lending protocols like Kamino and MarginFi, borrow APY typically ranges from 2-15% for major assets but can spike above 100% during high utilization periods.
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The annualized interest rate paid by borrowers in a lending protocol, expressed as annual percentage yield with compounding. Borrow APY is determined algorithmically by the interest rate model based on the pool's utilization rate. On Solana lending protocols like Kamino and MarginFi, borrow APY typically ranges from 2-15% for major assets but can spike above 100% during high utilization periods.
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AMMs, routing, liquidity, lending, and trading infrastructure.
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Borrow APY (borrow-apy) Category: DeFi Definition: The annualized interest rate paid by borrowers in a lending protocol, expressed as annual percentage yield with compounding. Borrow APY is determined algorithmically by the interest rate model based on the pool's utilization rate. On Solana lending protocols like Kamino and MarginFi, borrow APY typically ranges from 2-15% for major assets but can spike above 100% during high utilization periods. Aliases: Borrow Rate Related: Lending Protocol, Utilization Rate, Supply APY
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A DeFi protocol that enables users to deposit tokens to earn yield and borrow tokens against collateral. Key Solana lending protocols include Solend, MarginFi, Kamino, and Save (formerly Solend v2). Lending rates float based on utilization (borrowed/deposited). Deposits receive interest-bearing receipt tokens representing their share.
The percentage of total deposited assets currently borrowed in a lending protocol, calculated as total borrows divided by total deposits. Utilization rate is the primary input to interest rate models: higher utilization drives up borrow rates to incentivize repayment and attract new deposits. Most Solana lending protocols (Kamino, MarginFi) target an optimal utilization of 70-90%, with rates spiking sharply above this threshold.
The annualized interest rate earned by depositors (lenders) in a lending protocol. Supply APY equals the borrow APY multiplied by the utilization rate, minus any protocol fees. For example, if borrow APY is 10% and utilization is 80% with a 10% protocol cut, supply APY is approximately 7.2%. Depositors earn yield passively as borrowers pay interest on their loans.
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The annualized interest rate earned by depositors (lenders) in a lending protocol. Supply APY equals the borrow APY multiplied by the utilization rate, minus any protocol fees. For example, if borrow APY is 10% and utilization is 80% with a 10% protocol cut, supply APY is approximately 7.2%. Depositors earn yield passively as borrowers pay interest on their loans.
Annual interest rate paid by a bond issuer as percentage of face value. A 5% coupon on $1,000 bond pays $50/year. In tokenized bonds, coupon payments are automated as on-chain distributions. T-bills are zero-coupon (purchased at discount, redeemed at par).
A periodic payment exchanged between holders of long and short perpetual contract positions to keep the perp price anchored to the spot price. When the perp trades above spot (positive funding), longs pay shorts; when below spot (negative funding), shorts pay longs. Funding is typically settled every hour on Solana perps platforms like Drift and Jupiter Perps. High funding rates create arbitrage opportunities.
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A DeFi protocol that enables users to deposit tokens to earn yield and borrow tokens against collateral. Key Solana lending protocols include Solend, MarginFi, Kamino, and Save (formerly Solend v2). Lending rates float based on utilization (borrowed/deposited). Deposits receive interest-bearing receipt tokens representing their share.
The percentage of total deposited assets currently borrowed in a lending protocol, calculated as total borrows divided by total deposits. Utilization rate is the primary input to interest rate models: higher utilization drives up borrow rates to incentivize repayment and attract new deposits. Most Solana lending protocols (Kamino, MarginFi) target an optimal utilization of 70-90%, with rates spiking sharply above this threshold.
The annualized interest rate earned by depositors (lenders) in a lending protocol. Supply APY equals the borrow APY multiplied by the utilization rate, minus any protocol fees. For example, if borrow APY is 10% and utilization is 80% with a 10% protocol cut, supply APY is approximately 7.2%. Depositors earn yield passively as borrowers pay interest on their loans.
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A protocol that enables token swaps using algorithmic pricing against pooled liquidity instead of matching individual buyers and sellers. AMMs use mathematical formulas (typically constant product x*y=k) to determine prices based on the ratio of tokens in a liquidity pool. On Solana, major AMMs include Raydium, Orca, and Meteora.
An AMM design where liquidity providers concentrate their capital within specific price ranges instead of across the full 0-to-infinity range. CLMMs dramatically improve capital efficiency—LPs earn more fees per dollar deposited within their active range. If the price moves outside the range, the position becomes inactive. Orca Whirlpools and Raydium CLMM are leading implementations on Solana.
A smart-contract-held reserve of two or more tokens that enables trading via an AMM. Users deposit token pairs in specified ratios to become liquidity providers and earn trading fees. Pools are identified by their token pair and fee tier. Pool depth (total value locked) determines price impact for trades.
A token issued to liquidity providers representing their proportional share of a pool's reserves and accrued fees. LP tokens can be burned to withdraw the underlying assets. The value of LP tokens changes as the pool's token ratios shift and fees accumulate. LP tokens are often stakeable in yield farming programs for additional rewards.