Lenders deposit assets into Lending Pools (reference: List of Lending Pools) to lend liquidity to Traders on LeverFi.
Traders borrowing assets from Lending Pools are charged a floating borrow rate based on a lending curve that takes into account the utilization rate of the Lending Pools.
The utilization rate is calculated as the fraction of borrowed liquidity over total lending liquidity:
Utilization Rate (%) = (Assets Borrowed by Traders / Assets Deposited by Lenders) * 100
High utilization rates result in higher borrow rates charged on Traders.
Idle liquidity (not borrowed by traders) in the Lending Pools are redeployed to third party protocols to generate yield for Lenders. For the third party protocols, users can reference: Lending Pools List
This means that Lenders by default, will make a minimum passive yield at low utilization rates, and above-market yield at high utilization.