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

# Interest Rate Curve

<figure><img src="/files/NMl6BbyupTRkjLoc6z43" alt=""><figcaption></figcaption></figure>

The protocol supports different interest rate strategies that adjusts dynamically based on pool utilisation & is charged on the **user's asset exposure**.  Note that the base strategy used initially will be a simple fixed interest strategy where the interest remains fixed through out different pool utilisations.\
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Each pool's interest rate curve is defined by its **strategy contract**, which sets parameters like `baseInterestRate`, `interestRate1`, and `maxInterestRate`. This means different pools can have different interest dynamics depending on their underlying asset and risk profile.

Importantly, **multiple pools can share the same strategy contract**, enabling standardized rate behavior across similar asset classes or risk structures while keeping the system modular and efficient.\ <br>