# 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