Interest

Users with an active Supply position start earning interest paid by those borrowing in the market. The interest earned from supplying base assets is added to the lender’s total supplied balance and can be withdrawn if the market conditions are stable. Supplying also includes a utilization rate “kink,” meaning that beyond a certain point, the interest rate increases more rapidly, similar to the borrowing interest rate. It’s important to note that the Supply and Borrow APY do not have to increase at the same rate.