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Borrow vs. Trade (Margin Swap) on Rain.fi — What’s the Difference?

Discover the key differences between Borrow and Margin Swap on Rain.fi. Learn how to unlock liquidity or trade with leverage—without price liquidation risks.

May 13, 2025
RainFi Team

RainFi Team

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📌 Rain.fi offers two powerful ways to use your crypto: Borrow and Trade (Margin Swap). Both allow you to access liquidity, but they serve different purposes. Let’s break it down!


Borrow — Get Funds Without Selling Your Assets

Rain.fi menu, borrow button.png

Borrowing on Rain.fi lets you use your crypto or NFTs as collateral to take out a loan. You receive the borrowed tokens in your wallet and can use them freely.


✅ Use Case Example:

  • You own 10 SOL but need USDC for a new investment.
  • You borrow USDC against your SOL without selling it.
  • Later, you repay the loan and get back your SOL — even if it increased in value!

Who is it for? → Investors who want liquidity without selling assets.

🔗 Full article about the Borrow Tool here


Trade (Margin Swap) — Leverage Without Price Liquidation

Rain.fi menu, trade button.png

Margin Swap allows you to borrow and trade with leverage, without the risk of price-based liquidations. Instead of receiving the borrowed funds in your wallet, your collateral and borrowed amount are locked in a trading position.


✅ Use Case Example:

  • You believe SOL will pump and want a bigger position.
  • You deposit 10 SOL and use 3x leverage to trade with 30 SOL.
  • If SOL’s price rises, you profit more — but if it drops, you must extend or repay the loan before expiry.

Who is it for? → Traders who want leverage without forced liquidations.


🔗 Full article about the Trade Tool here


🧐 Which One Should You Use?

✔️ Need liquidity? → Use Borrow to get funds in your wallet.
✔️ Want to trade with leverage? → Use Margin Swap for bigger positions.
✔️ Want both? → Borrow first, then trade manually!


🚨 In both cases, you must Instant Sell, Repay, or Extend before the loan expires — otherwise, your collateral will be liquidated, and you’ll lose it.


Rain.fi makes DeFi lending & trading simple and flexible — whether you’re looking for liquidity or smart leverage strategies. Try it today! 🚀


🔗 Rain.fi Links:

Site: https://rain.fi/
Discord: https://discord.gg/rainfi
Twitter: https://twitter.com/RainFi_
FAQ : https://app.rain.fi/faq

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RainFi Team

RainFi Team