Analyzing high interest rates on borrows in DeFi protocol

Looking into blockchain data to know how a DeFi protocol can have more than 100% of interest for borrow assets We have recently seen that the interest rate to borrow a loan in BAT in the Aave protocol has increased from 100%. This data has caught the attention of all of us. How is this interest rate possible? How is someone going to be willing to pay this for this loan? Who is paying for it? In this post we will try to answer these questions. How interest rates work In any credit system, in order for someone to request…...