# Interest Rate Model

One of the most compelling advantages of Avalon’s CeDeFi lending model is the ability to borrow stablecoins from CeFi institutions at fixed, predictable interest rates, unaffected by changing utilization rates. Avalon has secured access to billions of USDT and USDC from top-tier CeFi institutions, ensuring stable borrow rates for users.<br>

The borrowing rate is determined by the CeFi institutions’ rates, plus an additional interest rate spread charged by Avalon as a service fee. This model offers borrowers stability and predictability, leveraging CeFi reliability while enhancing the DeFi experience with Avalon’s fee structure.

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