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Supply / Demand Management

The interest-rate earned by lenders is a function of the loan utilisation rate (size of loans / size of deposits), and the weighted average interest-rate of all loans. When demand for loans is high relative to supply (high loan utilisation rate), higher interest-rates will be earned by lenders (and vice versa).
When the loan utilisation rate is high, the interest-rate earned by lenders will be high, thereby incentivising lenders to deposit (and retain) assets in the pool. This will have the affect of decreasing the loan utilisation rate, reducing the interest-rate earned by lenders.
Similarly, when the loan utilisation rate is low, the interest-rate earned by lenders is low, incentivising suppliers to reduce their assets in the pool. This interest rate model is supply driven, where the supply of assets naturally balances over time to meet demand.
Earning MST is independent of lending activity in the protocol. This incentives users to retain assets regardless of the amount of loans outstanding.