Utilization Rate
The percentage of deposited assets in a lending protocol that are currently borrowed.
In-Depth Explanation
Utilization = Total Borrowed / Total Supplied. High utilization (80%+) means strong borrow demand but may prevent withdrawals. Most lending protocols use utilization-based interest rate curves—rates rise sharply above optimal utilization to incentivize deposits and repayments.
Related Terms
Lending Protocol
A DeFi application that matches lenders with borrowers through smart contracts, enabling permissionless borrowing and lending.
Annual Percentage Rate
APRThe annualized return on an investment without accounting for compounding.
Liquidity
The ease with which an asset can be bought or sold without significantly affecting its price.
More in Metrics
View all →Total Value Locked
TVLThe total value of crypto assets deposited in a DeFi protocol or across all of DeFi.
Protocol Revenue
Fees collected by a protocol that accrue to the protocol itself or its tokenholders, rather than to liquidity providers or other participants.
Take Rate
The percentage of transaction volume or fees that a protocol captures as revenue.
Fees
Total fees generated by activity on a protocol, regardless of who receives them.