Skip to main content
Rates on Creda are dynamic and driven by utilization: as more of an asset’s pool is borrowed, borrow rates rise to attract supply and encourage repayment; supply rates rise alongside.

​
Core Ideas

  • Utilization model: utilization = borrowed / supplied
  • Rate curves: gentle at low utilization, steep near the top to protect liquidity
  • Supply APY links to borrow APY: supply ≈ borrow × utilization × (1 − reserve factor)
Quick example: 
At 80% utilization with 10% borrow APY and 15% reserve factor:
Supply APY ≈ 10% × 0.8 × 0.85 = 6.8%

​
What To Watch

  • Current utilization for assets you use
  • Recent rate ranges (not single points)
  • Protocol announcements that adjust parameters

​
Practical Guidance

  • Suppliers: diversify, avoid chasing spikes, and plan for variability
  • Borrowers: budget for rate increases and keep health buffers
  • Everyone: treat rates as changing bands; optimize without over‑trading
For more on collateral safety and liquidations, see the related concepts.