Where Does the Yield Come From?
Suppliers earn the interest paid by borrowers in the same market. Rates float with utilization โ the more of a pool is borrowed, the higher the yield for suppliers.
Understanding the Utilization Curve
Each market uses an interest-rate curve that rises with utilization, balancing attractive yields against keeping liquidity available for withdrawals.
Risks to Understand Before Supplying
Supplying is not risk-free: collateral can fall sharply, oracles can lag, and high utilization can delay withdrawals. Isolation bounds these risks to the single market you chose.