Create an Interest‑Bearing Token on Solana (Token‑2022) – Step by Step
Learn how to mint a token that earns interest automatically, every second, using Solana’s Token‑2022 program.
No staking, no separate contracts – just a CLI and a wallet.
1. Prerequisites
- Solana CLI & SPL Token CLI installed
- A funded wallet (devnet/testnet)
- Basic terminal comfort
2. Create the Mint (with 5% interest)
The --interest-rate is in basis points (bps).
500 bps = 5% APY.
spl-token create-token \
--program-id TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb \
--interest-rate 500
Sample output mint address (yours will differ):
CRXKmUj2dVcJhr6uH5YVduZ352YdUeSxYT2WEvPA66Vu
3. Create a Token Account for Your Wallet
spl-token create-account <MINT_ADDRESS> \
--program-id TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb
(My created account: 9nSZ154gJQ8H2qzgLV8mk7K5N4LbngViksUyrzsgncn1)
4. Mint 1000 Tokens
spl-token mint <MINT_ADDRESS> 1000 \
--program-id TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb
5. Observe the Growing Balance
Check UI balance (applied interest)
spl-token balance <MINT_ADDRESS> \
--program-id TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb
Result right after mint: 1000.000362839 – already more than 1000!
Inspect mint metadata
spl-token display <MINT_ADDRESS> \
--program-id TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb
You’ll see:
SPL Token Mint
…
Supply: 1000000000000 (raw supply, 1000 tokens with 9 decimals)
Decimals: 9
Interest-bearing:
Current rate: 500bps
Average rate: 500bps
Rate authority: …
Key insight: The on‑chain supply never changes.
The UI balance grows because the program calculates interest per second from the last update time.
See raw account data (optional)
solana account <MINT_ADDRESS> --output json
Returns a base64‑encoded blob – that’s where the interest rate and timestamp live.
6. Wait and Watch Interest Compound
After a few minutes, run spl-token balance again.
The number will be larger – without any transaction.
7. Change the Interest Rate
As the rate authority, you can update the rate anytime.
spl-token set-interest-rate <MINT_ADDRESS> 15000 # 150% APY
Check display again – Current rate now shows 15000bps.
Balance will start climbing much faster.
Later I set it to 30000 (300% APY) and balance quickly went to 1000.015285823.
8. Rate Limits
The rate is stored as a 16‑bit signed integer (i16).
Max allowed: 32767 bps (~327.67% APY).
Min allowed: -32768 bps (negative interest, for demurrage tokens).
Trying 35000 or 100000 will error:
error: number too large to fit in target type
My Full Command History (Reference)
spl-token create-token --program-id TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb --interest-rate 500
spl-token create-account CRXKmUj2dVcJhr6uH5YVduZ352YdUeSxYT2WEvPA66Vu --program-id TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb
spl-token mint CRXKmUj2dVcJhr6uH5YVduZ352YdUeSxYT2WEvPA66Vu 1000 --program-id TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb
spl-token balance CRXKmUj2dVcJhr6uH5YVduZ352YdUeSxYT2WEvPA66Vu --program-id TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb
# 1000.000362839
spl-token display CRXKmUj2dVcJhr6uH5YVduZ352YdUeSxYT2WEvPA66Vu --program-id TokenzQdBNbLqP5VEhdkAS6EPFLC1PHnBqCXEpPxuEb
solana account CRXKmUj2dVcJhr6uH5YVduZ352YdUeSxYT2WEvPA66Vu --output json
spl-token set-interest-rate CRXKmUj2dVcJhr6uH5YVduZ352YdUeSxYT2WEvPA66Vu 15000
spl-token balance … # 1000.008316801
spl-token set-interest-rate CRXKmUj2dVcJhr6uH5YVduZ352YdUeSxYT2WEvPA66Vu 30000
spl-token balance … # 1000.015285823
Why This Matters
- Yield‑bearing stablecoins without external protocols
- Automatic savings tokens that reward holders per second
- Dynamic rates – adjust APY on the fly based on market conditions
- Fully on‑chain, permissionless, composable
Now go build your own interest‑bearing token. Happy hacking! 🚀