> For the complete documentation index, see [llms.txt](https://docs.meshswap.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.meshswap.fi/products/interest-rate.md).

# Interest rate

### **Utilization ratio**

$$
Utilization Ratio=(TotalBorrowed/PoolLiquidity)\*100
$$

​

### Deposit  APR

$$
DepositAPR=BorrowAPR∗(1−reserveFactor)
$$

* Leveraged yield farm will pay 80% of the accumulated interest earnings to a Lender, 20% will be set aside as reserves, and will later be used as a reserve fund for MESH Buyback & Burn.
* reserve Factor = 0.2

###

### Borrow APR

$$
BorrowAPR=BorrowingRateModel\*Utilization
$$

### Borrowing Rate Model  <a href="#borrowingratemodel" id="borrowingratemodel"></a>

\*Please note the MESH interest rate model is different from other tokens.

**WMATIC / WETH / WBTC / USDT / DAI /USDC / oMATIC / oXRP / oKLAY / oKSP / oORC / oTON / BUSD**

<figure><img src="https://3878813668-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FM1gzBNB1aJtiOiiZpgC5%2Fuploads%2F3aJpSjMxZPHQwnHi8ZPc%2Fimage.png?alt=media&amp;token=f1a2320f-fd74-4180-a45a-45a118bd5516" alt=""><figcaption></figcaption></figure>

<table><thead><tr><th>Utilization Ratio</th><th width="210.89753863766458">Borrwoing Rage Range</th><th>Logic</th></tr></thead><tbody><tr><td>0%~60%</td><td>0%~20%</td><td>Borrowing Rate = Utilization / 3 </td></tr><tr><td>60%~90%</td><td>20%</td><td>Borrowing Rate = 0.2 </td></tr><tr><td>90%~100%</td><td>20%~100%</td><td>Borrowing Rate = Utilization * 8 - 7 </td></tr></tbody></table>

**MESH**

<figure><img src="https://3878813668-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FM1gzBNB1aJtiOiiZpgC5%2Fuploads%2FkcAePXH6xq2nVt8xet89%2Fimage.png?alt=media&amp;token=962cca36-d15d-4e4c-aa1f-d403647f328f" alt=""><figcaption></figcaption></figure>

| Utilization Ratio | Borrowing Rate Range | Logic                                   |
| ----------------- | -------------------- | --------------------------------------- |
| 0%\~60%           | 0%\~20%              | Borrowing Rate = Utilization / 3        |
| 60%\~90%          | 20%                  | Borrowing Rate = 0.2                    |
| 90%\~100%         | 20%\~300%            | Borrowing Rate = Utilization \* 28 - 25 |