# Supplier Rates

The pool’s utilization multiplier $$M$$ and current borrowing rate is managed through governance. And the supplier’s interest rate is calculated as:

$$
Supplier,Rate\_{a}=BorrowRate\_{a},*Pool\_{a},Util,* (1-rFactor)
$$

Where $$rFactor$$ is the percentage of revenue from borrowers paid back to the protocol insurance pool. It will be managed by the dAMM governance, and is initially set to 25%.