Hey, why is there such a large margin on borrowing... @officialjustlend

Asked 1145 days ago
Viewed 89 times
0

Hey, why is there such a large margin on borrowing and lending rates? Is it possible to borrow USDD and lend the same USDD out at a higher rate? I doubt it but can someone please clarify?

1 Answers

The margin between borrowing and lending rates is largely determined by the utilization rate of the asset being borrowed and lent. Utilization rate is the ratio of the amount of an asset that is being used to the total amount of that asset available to be used. When the utilization rate is high, the margin between borrowing and lending rates tends to be large. This is because the demand for the asset is high, which drives up the cost of borrowing it. It is possible to borrow USDD and lend it out at a higher rate, but this is largely dependent on the market conditions. To get a better understanding of the current market conditions, it is best to check the Market on JustLend.org. This website provides an overview of the current market conditions and includes information on the utilization rate, borrowing and lending rates, and other factors that can influence the margin between borrowing and lending rates.
answered 1145 days ago
0
Utilization rates, check the Market on JustLend.org
answered 1144 days ago

Subscribe to our newsletter

* indicates required

Thank you for subscribing!