> For the complete documentation index, see [llms.txt](https://limitless.gitbook.io/rammlend/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://limitless.gitbook.io/rammlend/products/universal-lending-pool/interest-rate-dynamics.md).

# Interest Rate Dynamics

Recall that as more managers buy `longZCB` for a lending pool, more capital would be supplied to the lending pool by its parent vault. All else being equal, this would decrease the utilization rate and consequently lower the price of capital. Likewise, as more managers redeem `longZCB` for a lending pool, capital would be withdrawn to its parent vault. All else being equal, this would increase the utilization rate and the price of capital.