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)
Enabling Auto Lend is recommended for maximum capital efficiency. Auto Lend is a subaccount setting that automatically lends all available assets sitting in a subaccount to the lending pool.
When Auto Lend mode is enabled, users can seamlessly start lending by depositing assets to their subaccount or buying an asset with a lending market.
- Note: Preferences are separated by subaccount so make sure to enable in each one.
1) Navigate to the Lend dashboard and open the Margin Preferences menu.
2) Toggle on Auto Lend. This will automatically place your eligible assets into lending pools.
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 settings off in Margin Preferences.
Once it has been disabled you can manually open Lend positions.
1) Navigate to the Lend dashboard and swap to the Lend menu.
2) Enter the amount of crypto you want to place into a lending pool.
- Note: The 'Available to lend' amount is calculated based on your account balances.
3) Select the Lend button to open the position.
Do you have questions or require further information?
Click the red Live Chat button in the lower right of your screen or contact us via email at: support@backpack.exchange
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