Interest Rate Model
When capital is available: low interest rates to encourage borrowing.
When capital is scarce: high interest rates to encourage repayments of debt and additional supplying.
FAQ
What is utilization rate?
Each asset has a different utilization rate:
What is optimal utilization rate?
How is the variable interest rate calculated for each asset?
To illustrate, here are the interest rates for some assets with different utilization rate:
What is deposit APY?
The average deposit APY over a period also includes any Flash Loan fees incurred, and $SIO2 reward incentives.
Last updated