> For the complete documentation index, see [llms.txt](https://nx-finance.gitbook.io/nx-finance-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nx-finance.gitbook.io/nx-finance-whitepaper/protocol-mechanism/strategy-2-or-gold-mining-strategy/interest-rate-curve.md).

# Interest Rate Curve

## Correlation of Utilization Rate & Borrow APR of GMS Pool <a href="#correlation-of-utilization-rate-and-lending-fee" id="correlation-of-utilization-rate-and-lending-fee"></a>

* 0-90% Utilization Rate: Interest rates will grow linearly from 5% to 20%.
* 90-100% Utilization Rate: Interest rates will experience a linear increase from 20% to 25%.

This two-tiered interest rate framework is established to guarantee a reliable income stream for lenders at varying levels of pool utilization.&#x20;

The progressive increase in interest rates as utilization approaches its upper limit is a strategic measure to balance the attraction of lending capital with the sustainability of the financial ecosystem. Additionally, the base rate will be subject to a monthly review and discussion.