Have a look at our interest rate model here ==> https://fringefinance.medium.com/announcing-fringes-improved-interest-model-d3971e86ea3c In general, the effect on interest rates is that they will be competitive. Once you have a look, you'll see the original question has presuppositions that don't apply. It aims for capital efficiency. i.e. to be maximally interesting to both lenders and borrowers. Positives: Benefits are higher utilisation rates >> better returns for lenders than if their capital was not being lent out >> more fees collected by the platform given more borrowers paying interest. Other positives are more stable interest rates as participants enter/leave the markets - as compared to basic interest-rate-vs-utilisation-rate curves used by most other platforms that spike and trough dramatically when there are big changes in participation. Also, we anticipate yield aggregators and retail users will appreciate the greater set of markets we offer and the more stable rates. Some of these benefits are qualitative and not just quantitative and therefore I'd say questions such as 'is numba bigga' which presuppose single-dimension considerations are blind to the benefits available with more sophisticated models. As an analogy, Fringe's liquidation incentive is not a fixed percentage as with some platforms. AAVE, for example, has fixed liquidation rewards. So a question such as "what is the liquidation reward percentage?" does not apply in that case either and is blind to the qualitative benefits that arise from the competitive landscape with (in the case of liquidation rewards) rewards that are inversely proportional to a position's health factor. Greater competition amongst liquidators, lower costs to borrowers >> greater adoption by borrowers, greater stability for lenders >> higher lender adoption. Let's see. And Fringe will establish incentive programs from time to time that will distort the markets with the aim to achieve adoption/usage targets and respond to the competitive landscape, Incentive programs are transitory, ofc, because of their unsustainability. Market fit will dictate how aggressively we can run incentive campaigns. Paradoxically, if Fringe does enjoy good market fit, there will be less need to run incentive programs, esp in the longer term.