> For the complete documentation index, see [llms.txt](https://docs.amply.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.amply.finance/interest-rate-model/supply-rate.md).

# Supply rate

The interest rate paid by borrowers is distributed as yield to users who supplied to a respective lending pool, excluding a “spread” that is sent to the ecosystem reserve (the amount is determined by the reserve factor).

***Supply interest rate = utilization rate \* borrow rate \* (1 - reserve factor)***

If the utilization rate of a lending pool is 50% and the borrow rate is 10%, then borrowers are only paying 10% on half of the assets supplied. As a result, lenders will actually only receive 5% on their capital (minus the reserve factor).