Alkemi Earn utilizes a dynamic interest rate model to incentivize liquidity. The model is encoded into the money market smart contracts in the protocol. When liquidity is low in a given market, the interest rate increases to incentivize depositors. When liquidity is high, the interest rate decreases to incentivize borrowers. This model also enables participants to borrow and lend directly, removing the necessity for counterparty negotiation of loan terms including maturity, interest rate, and collateral. However, incentivized liquidity does not imply guaranteed liquidity.