Supply Rates

In Solera, the interest paid by borrowers is distributed as yield to asset suppliers, determining the supply rate. A portion of this yield is allocated to the ecosystem reserve according to the reserve factor. This system ensures that the yield from borrowed assets is fairly distributed among all suppliers, enhancing the protocol's liquidity.

The supply Annual Percentage Yield (APY) is influenced by several factors:

• Utilization Ratio: The ratio of lent-out assets to the total available supply.

• Variable Rate: The interest rate on loans, which may fluctuate based on market conditions.

• Reserve Factor: The percentage of yield redirected to the protocol’s liquidity reserve.

Additionally, supply rates may be supplemented by other token incentives on a pool-by-pool basis. For the latest supply APY information for each asset, users should refer to the Solera Markets interface.