> For the complete documentation index, see [llms.txt](https://srwa.gitbook.io/srwa-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://srwa.gitbook.io/srwa-docs/core-calculations/utilization.md).

# Utilization

**Utilization Rate** measures how much of the available liquidity is actively engaged in lending. For instance, if a liquidity pool has $1 million in available funds and $700,000 is actively used, the Utilization Rate would be 70%.

In this case, pool utilization is calculated by dividing total borrow balance and total deposit balance of the Pool:

utilization = pool\_borrow\_balance / pool\_deposit\_balance;

Utilization is driving the borrow rate, so the bigger it is, bigger will the rates be.