Spread
The difference between two related prices or rates — bid-ask spread, supply-borrow spread, swap-Treasury spread.
In stablecoin lending, supply-rate < borrow-rate by the spread the protocol captures. In bond / bond-equivalent analysis, spread quantifies credit / liquidity risk over a benchmark. Tight spreads = efficient markets; wide spreads = friction or mispriced risk.
Related terms
- Borrow rateThe interest rate paid by borrowers in a [[lending-market]], typically a function of pool [[utilisation]].
- Supply rateThe interest rate suppliers earn in a pool-based lending market — derived from borrow rate × utilisation.
- Basis pointsOne-hundredth of a percentage point (0.01%) — the standard unit for quoting yield differences and fees.