Supply Rate (Lending)
The interest rate earned by suppliers depositing digital assets into a lending pool.
What is Supply Rate (Lending)?
Supply rate is the annualized return suppliers earn on assets deposited in lending pools, driven by pool utilization and borrow demand. For example, supplying USDC to Aave at a 70% utilization rate might yield a 5% supply rate. Rates are typically variable, adjusting dynamically, though fixed-rate options exist on protocols like Notional Finance.
In 2025, supply rates range from 2% for stablecoins to 10% for volatile assets like ETH during high demand. Governance tokens, like AAVE or COMP, often boost effective yields. In 2024, Compound’s USDT pool averaged 4.5% supply rates, per DefiLlama.
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