> For the complete documentation index, see [llms.txt](https://docs.mutuum.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mutuum.com/stablecoin/interest-and-discount-rates.md).

# Interest and Discount Rates

An overcollateralized stablecoin depends on an interest rate to maintain price stability, and this rate will be coded into Mutuum’s smart contracts. Unlike typical supply-and-demand models for interest, the stablecoin’s rate may be adjusted according to certain policy rules set by Mutuum’s maintainers. If desired, a discount mechanism could reward select users or stakeholders with lower borrowing costs. This dual structure - consisting of a protocol-wide rate and an optional discount for stakers - gives Mutuum the flexibility to adapt to market conditions while incentivizing community engagement.