# Supply Rate Methodology

Borrow interest rates paid are distributed as yield for aToken holders who have supplied assets in the protocol, excluding a share of yields sent to the ecosystem reserve defined by the reserve factor on a per asset basis.

The **deposit (supply) interest rate** is paid on assets supplied, which is shared amongst all liquidity providers. The deposit APY $$D\_t$$ is:

$$
D\_t = U\_t(VB\_tV\_t)(1 - R\_t)
$$

* $$U\_t$$ = the utilization ratio
* $$VB\_t$$ = the share of variable borrows
* $$V\_t$$ = the variable rate
* $$R\_t$$ = the reserve factor


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.bonzo.finance/bonzo-risk-framework/liquidity-risk/supply-rate-methodology.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.