diff --git a/x/hard/keeper/interest.go b/x/hard/keeper/interest.go
index 3a192120..bc28a8c8 100644
--- a/x/hard/keeper/interest.go
+++ b/x/hard/keeper/interest.go
@@ -120,6 +120,12 @@ func (k Keeper) AccrueInterest(ctx sdk.Context, denom string) error {
 	// Calculate borrow interest factor and update
 	borrowInterestFactor := CalculateBorrowInterestFactor(borrowRateSpy, sdk.NewInt(timeElapsed))
 	interestBorrowAccumulated := (borrowInterestFactor.Mul(sdk.NewDecFromInt(borrowedPrior.Amount)).TruncateInt()).Sub(borrowedPrior.Amount)
+
+	if interestBorrowAccumulated.IsZero() && borrowRateApy.IsPositive() {
+		// don't accumulate if borrow interest is rounding to zero
+		return nil
+	}
+
 	totalBorrowInterestAccumulated := sdk.NewCoins(sdk.NewCoin(denom, interestBorrowAccumulated))
 	reservesNew := interestBorrowAccumulated.ToDec().Mul(mm.ReserveFactor).TruncateInt()
 	borrowInterestFactorNew := borrowInterestFactorPrior.Mul(borrowInterestFactor)