Optimize your lending strategy with passive yield through Delegation

We're proud to announce that we just launched a powerful new feature for lenders: Delegation.

If you’ve ever created a liquidity pool but saw some of your funds sit unused, this is for you. With Delegation, your idle USDC or SOL can now generate yield automatically, even before it’s borrowed on P2P.

Let’s break down how it works, what it means for your strategy, and how to activate it.

What is delegation on Rain.fi?

In short: Delegation allows your unused liquidity to be temporarily deployed on another lending protocol (Project 0), where it earns passive interest until a borrower needs it on Rain.

Example:

You create a lending pool with 1,000 USDC, but no one borrows from it right away.

→ Instead of sitting idle, your USDC is delegated to Project 0, earning up to 6.44% APY at date.

→ The moment someone borrows from your pool or you choose to withdraw, the funds are instantly pulled back to Rain to fulfill the loan or your request.

Key features of Delegation

• Manual Activation: You decide if you want to enable delegation, directly from your pool settings (both in Lite and Pro mode).
• Automatic Management: Once activated, everything happens automatically behind the scenes.
• Instant Recall: Funds return to Rain instantly whenever:
• • A borrower takes a loan
  • You want to withdraw unused liquidity
  • You disable the delegation option
• Supported Assets:
• • USDC — up to 6.44% APY
  • SOL — up to 5.23% APY
• No Platform Fees: Rain.fi does not take any fee from the interest you earn via delegation.
• Secure Integration: Delegation is currently powered by Project 0, a trusted Solana lending protocol.

About Project 0: Where your delegated funds go

When you activate delegation on Rain.fi, your idle funds are temporarily allocated to Project 0, our current delegation partner. Project 0 is a DeFi-native prime broker built on Solana. It’s designed to improve capital efficiency by connecting multiple protocols and enabling unified margin trading across platforms.

Unlike traditional lending platforms, Project 0 doesn’t create its own markets. Instead, it acts as a bridge between protocols like Drift, Kamino, and Jupiter, allowing better capital deployment without fragmentation. It’s an infrastructure layer that helps maximize returns from otherwise unused funds.

🔗 Explore Project 0

Why use delegation?

Rain.fi is all about control: You decide your APY, accepted collateral, and LTV.

With Rain.fi, you’re free to set your own lending conditions, including higher APYs and custom collateral requirements, to target specific high-yield opportunities.

This strategy often means you’re lending less frequently, waiting for the right borrower to accept your terms.

But even with more “standard” pool settings, borrower demand can vary depending on market conditions.

That’s where Delegation shines:

• Your unused funds work for you while waiting to be borrowed
• You don’t need to sacrifice precision in your loan parameters to generate yield

How to activate or disable delegation

From the My Pools dashboard:

• Click on the setting button’s pool you want to manage
• Now, in the settings, look for Delegation
• Toggle it ON or OFF

Can I still withdraw or update my pool?

Absolutely. Even if your funds are delegated:

• You can update parameters at any time
• You can withdraw unused funds instantly
• You can disable delegation with one click

Final Thoughts

You’re no longer penalized for being selective with your loan settings. Now, even when demand is low, your assets can earn yield passively until the next borrower shows up.

Want to create Your First Pool?

If you haven’t created a pool yet, follow our step-by-step guide here:

👉 How to Lend Tokens & NFTs with Your Own Liquidity Pool

🔗 Rain.fi Links:

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

🔗 Discover all our articles about Rain.fi