# Rates and Fees

## Interest Rates 

### Determining Factors  

**Pool Type**

Alkemi Earn Verified pools and Earn Open pools are separate from each other and so rates can differ. E.g. The borrowing rate might be twice as high in the Verified pool for WBTC compared to the Open pool for WBTC at any given time.

So, please be conscious of which pool you are looking at, and intending to use.

Which pool group you are looking at, and the control to change between them can be found in the lower left of the Earn UI.

However, the tables and rules for both, described below, are the same.

**Supply and Demand**

Interest rates for both borrowing and lending are calculated based on a single dynamic variable reflecting the current supply and demand for each liquidity pool on the market. When liquidity is low, interest rates increase algorithmically to incentivize lenders to inject more liquidity into the pool. When liquidity is high, interest rates are reduced algorithmically to provide attractive and competitive rates to borrowers.

### Current Rates by Asset

{% tabs %}
{% tab title="USDC & DAI" %}

| **Utilization** | **6.7%** | **13.3%** | **20%** | **40%** | **60%** | **80%** | **86.7%** | 93.3%  |
| --------------- | -------- | --------- | ------- | ------- | ------- | ------- | --------- | ------ |
| **Borrow Rate** | 1.33%    | 1.67%     | 2.00%   | 2.67%   | 3.33%   | 4.00%   | 12.67%    | 21.33% |
| **Lend Rate**   | 0.09%    | 0.22%     | 0.40%   | 1.06%   | 1.98%   | 3.17%   | 10.87%    | 19.71% |
| {% endtab %}    |          |           |         |         |         |         |           |        |

{% tab title="BTC" %}

| **Utilization** | **0.7%** | **1.3%** | **2.0%** | **28%** | **54%** | **80%** | **86.7%** | **93.3%** |
| --------------- | -------- | -------- | -------- | ------- | ------- | ------- | --------- | --------- |
| **Borrow Rate** | 1.5%     | 2.0%     | 2.5%     | 11.67%  | 20.83%  | 30%     | 36.67%    | 43.33%    |
| **Lend Rate**   | 0.01%    | 0.03%    | 0.05%    | 3.23%   | 11.14%  | 23.76%  | 31.36%    | 40.04%    |
| {% endtab %}    |          |          |          |         |         |         |           |           |

{% tab title="ETH" %}

| **Utilization** | **0.7%** | **1.3%** | **2.0%** | **28%** | **54%** | **80%** | **86.7%** | **93.3%** |
| --------------- | -------- | -------- | -------- | ------- | ------- | ------- | --------- | --------- |
| **Borrow Rate** | 1.5%     | 2.0%     | 2.5%     | 11.67%  | 20.83%  | 30%     | 36.67%    | 43.33%    |
| **Lend Rate**   | 0.02%    | 0.05%    | 0.10%    | 1.55%   | 4.42%   | 8.71%   | 14.87%    | 21.87%    |
| {% endtab %}    |          |          |          |         |         |         |           |           |
| {% endtabs %}   |          |          |          |         |         |         |           |           |

## Healthy Utilization Rates Table 

|                    | USDC & DAI | BTC    | ETH    |
| ------------------ | ---------- | ------ | ------ |
| Min Rate (0% UR)   | 1.00%      | 1.00%  | 1.00%  |
| Healthy Min UR     | 20.00%     | 2.00%  | 4.00%  |
| Healthy Min Rate   | 2.00%      | 2.50%  | 2.50%  |
| Healthy Max UR     | 80.00%     | 80.00% | 80.00% |
| Healthy Max Rate   | 4.00%      | 30.00% | 11.00% |
| Max Rate (100% UR) | 30.00%     | 50.00% | 30.00% |

## Exchange Rates

Earn uses a decentralized price oracle, [ChainLink](https://feeds.chain.link/), to calculate current mid-market rates between assets on the protocol. Exchange rates between currencies are prone to volatility.

![](/files/-MQmfHUtVshd-UDIoKJo)

## Fees and commissions

All transactions on the Ethereum network incur gas fees. Users can choose to pay more or less gas according to their need for fast transaction processing. 

Borrowing also incurs origination fees amounting to 0.1% of the borrow size. This amount is added to the balance owed. 


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