Utilization rate
The proportion of a lending pool’s supplied liquidity that is currently borrowed.
In more detail
Utilization tells you how much of a pool's available capital borrowers are using. Many lending models raise borrowing rates as utilization rises, but the exact calculation follows the protocol's accounting. High utilization can also mean less immediately available liquidity for withdrawals, so a healthy deposit balance isn't always the same as cash ready to leave.
How you might use it
Borrowing demand rises in a lending pool, pushing utilization up and leaving less unborrowed liquidity for suppliers to withdraw immediately.
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