Supply Rate (Lending)
The interest rate earned by suppliers depositing digital assets into a lending pool.
What is Supply Rate (Lending)?
Supply rate is the annualized return suppliers earn on assets deposited in lending pools, driven by pool utilization and borrow demand. For example, supplying USDC to Aave at a 70% utilization rate might yield a 5% supply rate. Rates are typically variable, adjusting dynamically, though fixed-rate options exist on protocols like Notional Finance.
In 2025, supply rates range from 2% for stablecoins to 10% for volatile assets like ETH during high demand. Governance tokens, like AAVE or COMP, often boost effective yields. In 2024, Compound’s USDT pool averaged 4.5% supply rates, per DefiLlama.
Related Terms
Decentralized Data Marketplace
A platform for trading data assets without centralized control.
Lean Ethereum
A visionary Ethereum Foundation initiative unveiled in July 2025 to harden and scale the Ethereum protocol through minimalism, formal verification, and hash-based post-quantum cryptography.
Currency Sovereignty
A nation's control over its monetary policy and issuance in the digital era.
Circulating Supply
The total number of a digital asset's tokens or coins that are publicly available and actively circulating in the market.
Gas Limit of a Block
The maximum total gas allowed for all transactions included in an Ethereum block.
Gas Limit of a Transaction
The maximum amount of gas a user is willing to spend on an Ethereum transaction.