> For the complete documentation index, see [llms.txt](https://compound-1.gitbook.io/compoundtutorials/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://compound-1.gitbook.io/compoundtutorials/chapter-2-markets-utilization-and-interest-rates/6.-why-this-matters.md).

# 6. Why This Matters

Interest rates are the heartbeat of any lending protocol. By gradually increasing rates at lower utilization and accelerating them beyond a certain threshold, Comet ensures:

• Lenders (Suppliers) get rewarded fairly for providing liquidity, especially when there’s higher demand.

• Borrowers can anticipate how rates might change if the market becomes more utilized, helping them manage their borrowing costs.

• The ecosystem stays balanced over time, preventing liquidity shortages.