DeFiBeginner
Borrow rate
The interest rate charged on borrowed assets.
PLAIN-ENGLISH DEFINITION
In more detail
A borrow rate is the cost of keeping debt open, often displayed as an annualized figure. Variable rates can change with the pool's conditions, including utilization, so the number you saw at entry isn't necessarily the cost for the whole loan. Growing interest also affects your debt balance and collateral position.
IN THE WILD
How you might use it
You check a loan after a busy week and find both a higher variable borrow rate and a larger outstanding debt balance.
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