Utilisation
utilizationpool utilisation
Borrowed assets / supplied assets in a lending market — drives the supply / borrow rate via a kinked curve.
Most lending protocols have a kink point (typically 80-90% utilisation) above which borrow rates climb steeply, pricing toward the maximum APR. High utilisation = less withdrawable supply; sustained 100% utilisation can leave depositors temporarily unable to redeem.
Related terms
- Supply rateThe interest rate suppliers earn in a pool-based lending market — derived from borrow rate × utilisation.
- Borrow rateThe interest rate paid by borrowers in a [[lending-market]], typically a function of pool [[utilisation]].
- Lending marketA pool-based protocol where suppliers earn interest from borrowers, with rates set algorithmically by utilisation.