Interest Rate
How to calculate supply and borrow rate
Last updated
How to calculate supply and borrow rate
Last updated
To calculate Interest Rate:
: Optimal Utilization - The utilisation rate targeted by asset reserve.
: Base Borrow Rate - Defines minimum borrow rate.
: Rate Slope 1 - Constant representing the scaling of the interest rate versus the utilization, when utilization is below optimal.
: Rate Slope 2 - Constant representing the scaling of the interest rate versus the utilization, when utilization is over optimal.
To calculate Supply APY:
: Supply Rate - Expected APY.
: Utilization Ratio - Ratio between borrowed liquidity and total liquidity
: Interest Rate - Borrow interest rate.
: Reserve Factor - Protocol fee.