The chart visualises the algorithmic relationship between supply and demand. The sharp rise (kink) typically occurs at 80-90% utilisation to protect liquidity.
We are analysing the ratio between 'Supply' (Deposits) and 'Demand' (Loans). A rate of 46.07% tells us exactly how much of the pool is being put to work.
The Mechanics: When utilisation is low, interest rates drop to attract borrowers. When it is high, rates spike to attract lenders.
Current State: Metrics indicate a healthy lending market. The debtors are active enough to generate fees, but enough reserves remain to ensure lender confidence. This dynamic directly influences the APY volatility you see on the dashboard.
Projecting pool stability under hypothetical high-demand scenarios.
| Scenario | Remaining Liquidity | Risk Level |
|---|---|---|
| Current State | $74,554,570 | Optimal |
| At 90% Utilisation | $13,824,322 | Critical |
| At 95% Utilisation | $6,912,161 | Insolvent Risk |
Utilisation Rate: The percentage of the pool's total capital currently lent out to borrowers. It is the primary driver of interest rates in DeFi.
The Kink: A specific point in the interest rate curve (usually 80-90%) where borrowing costs jump exponentially to discourage depleting the pool entirely.
Safety Buffer: The remaining 53.9% of liquidity ensures lenders can withdraw their assets without waiting for borrowers to repay loans.
The Utilisation Rate is the single most important metric in DeFi lending. It balances the ecosystem. If utilisation is too low (e.g., 10%), there is too much idle capital earning no interest, leading to low APY for lenders. If utilisation is too high (e.g., 99%), there is a "liquidity crunch," meaning lenders cannot withdraw their funds until borrowers repay loans.
Protocols use an algorithmic "Interest Rate Model" to manage this. As utilisation rises, the borrowing interest rate rises to encourage repayments. Most protocols aim for an "Optimal Utilisation" rate (usually around 80%), where capital efficiency is maximised without risking a liquidity crisis.
Data Sources: Metrics derived from hourly snapshots via the DeFiStar Indexer. Active Tracking: 23 Jan 2026, 19:05 UTC.
Disclaimer: Data is for informational purposes only. Past performance is not indicative of future results. Terms of Service apply.
Notice: This website provides informational analytics and data services only.
We are not authorised or regulated by the Financial Conduct Authority (FCA).
We do not offer, facilitate, or provide any financial services or products, including cryptocurrencies,
digital assets, or derived products. Content on this site does not constitute financial advice.
DeFiStar.io is an independent data utility. We do not accept listing fees, we do not have an affiliate relationship with protocols, and we do not sell financial products. Our rankings are 100% algorithmic based on on-chain liquidity and smart contract data.
By accessing or using this website, you agree to be bound by our
Terms of Service
and acknowledge our Risk Disclosures.