# 5. Supply and Borrow Interest Rates vs. Utilization Rate Chart

<figure><img src="/files/rUqo6DW8oymsc2e9GWe2" alt=""><figcaption></figcaption></figure>

#### Chart Breakdown: Supply and Borrow Interest Rates vs. Utilization Rate

* **X-Axis (Utilization Rate)**:
  * Represents the percentage of the base asset borrowed relative to its total supply (0% to 100%).
* **Y-Axis (Interest Rate)**:
  * Shows the percentage interest rates for suppliers (blue curve) and borrowers (red curve).
* **Supply Rate Curve (Blue)**:
  * Gradually increases as the utilization rate rises, reflecting the earnings for supplying assets.
* **Borrow Rate Curve (Red)**:
  * Rises steadily before 80% utilization and sharply increases after the **kink point**.
* **Kink Point (80% Utilization)**:
  * Marked with a dashed line, it indicates the threshold where borrowing costs escalate due to higher utilization risk.
* **Annotation**:
  * A note clarifies that collateral assets do not earn or pay interest.


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