> For the complete documentation index, see [llms.txt](https://docs.suilend.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.suilend.fi/faq/how-does-yield-on-suilend-work.md).
# How does yield on Suilend work?
In this article we'll explain how yield works in lending protocols like Suilend and why it's considered a reliable yield source in DeFi.
### Where does the yield come from?
Depositing into the USDC pool on the Suilend main market.
When you deposit on Suilend, you’re supplying liquidity to a shared pool. Borrowers take loans from that same pool by posting collateral.\
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The interest borrowers pay becomes the yield depositors earn, minus a small protocol fee, usually 20% of the borrow interest rate, called the interest rate spread.
### Utilization
Lending rates revolve around one key metric: utilization.
* If utilization is low: liquidity is abundant, then rates stay low.
* If utilization is high: liquidity is scarce, then rates rise to attract deposits.
Suilend uses a dynamic interest rate curve to set rates automatically.
### What happens when rates rise?
When liquidity gets tight, interest rates rise.
This discourages excessive borrowing and rewards depositors with higher yields - keeping the market in balance.
As seen below: USDC rates spiked but quickly reverted to the average 9.7% APR as liquidity returned.
### How do I check pool parameters?
As a reminder - all parameters on Suilend are fully transparent and accessible onchain.
Explore each pool’s data - from interest rate curves and utilization to reserve factors and related objects - directly on the app.
### Yield on Suilend
Deposit interest on Suilend comes directly from onchain borrowing activity - fully transparent on Sui.
No external fund managers. No backroom deals.
Just borrowers paying interest and depositors earning it. That's real yield.