# Recursive Borrows Share

**Overview**

The Recursive Borrows Share in a DeFi protocol refers to the proportion of the total borrowing activity in the protocol that is generated through recursive lending strategy. Recursive lending strategies are those which borrow an asset which is then resupplied into the lending side and potentially borrowed again, thus rehypothecating the protocol’s debt.

**How can I use it?**

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A high proportion of borrowing activity generated through recursive lending can indicate that the protocol is relying heavily on this technique, which can generate second order effects when incentives are no longer aligned for the strategy to be profitable. For example, one can likely expect loans to be repaid if the Recursive Borrows share is 90% and token incentives (or their value) are decreasing.&#x20;

On the other hand, a low proportion of Recursive Lending Borrows Share can suggest that the DeFi protocol is less reliant on this strategy, which may make it more stable and less susceptible to protocol interest rates and rewards volatility. Understanding this metric can provide valuable insight into the behavior of borrowers and the health of its borrowers.


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