> For the complete documentation index, see [llms.txt](https://seahorsefi.gitbook.io/seahorsefi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://seahorsefi.gitbook.io/seahorsefi/protocol/interest-rates.md).

# Interest Rates

## Interest Rates <a href="#interest-rates" id="interest-rates"></a>

Users with a positive balance of the base asset earn interest, denominated in the base asset, based on a supply rate model; users with a negative balance pay interest based on a borrow rate model. These are separate interest rate models, and set by governance.

The supply and borrow interest rates are a function of the utilization rate of the base asset. Each model includes a utilization rate “kink” - above this point the interest rate increases more rapidly. Interest accrues every second using the block timestamp.

Collateral assets do not earn or pay interest.

#### &#x20;<a href="#get-supply-rate" id="get-supply-rate"></a>