What it means
The variable interest earned for supplying tokens to a lending market.
It comes from what borrowers pay, shared across lenders, minus the protocol's cut. That's why it's lower than the borrow rate.
How it works
It changes all the time with demand to borrow.
Related terms
| Term | What it means |
|---|---|
| Borrow rate | The variable interest a borrower pays on a loan in a lending market. |
| APY | Annual percentage yield: what a deposit would earn over a year at today's rate, with interest added back as it comes in. |
| Utilisation | How much of a lending pool is currently borrowed, as a share of everything supplied. |
This glossary explains terms in general. It isn't investment, tax or legal advice.