Interest Rate Model
APY Function
Parameters below are different based on token type (major, stable, governance...... etc).
Borrow APY
= {1 + [Base + Multiplier * min(UtilizationRate, Kink 1) + max(JumpMultiplier * UtilizationRate - Kink 2, 0)] / BlocksPerYear } ^ BlocksPerYear - 1
Supply APY
= Distribute (Interest Paid by Borrowers Per Block - Reserve) to all suppliers, and convert it into APY
= Distribute [(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) to all suppliers, and convert it into APY
= {[(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) / Total Supply}, and convert it into APY
= {1 + [(1 + Borrow APY) ^ (1/BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) / Total Supply} ^ BlocksPerYear - 1
= {1+[(1+Borrow APY)^(1/BlocksPerYear)-1]*(1-Reserve Factor)*Utilization Rate}^BlocksPerYear-1
BlocksPerYear = 31,536,000 (1 sec per block)
Find other variables in Markets
Major
| Parameter | Value |
|---|---|
Category | Major |
Tokens | WFTM, ETH, BTC |
Base | 0% |
Multiplier | 15% |
JumpMultiplier | 200% |
Kink 1 | 80% |
Kink 2 | 90% |
Contract Address |
Stable
| Parameter | Value |
|---|---|
Category | Stable |
Tokens | USDC, DAI, fUSDT, MIM, FRAX, TUSD, UST |
Base | 0% |
Multiplier | 13% |
JumpMultiplier | 800% |
Kink 1 | 80% |
Kink 2 | 90% |
Contract Address |
Governance
| Parameter | Value |
|---|---|
Category | Governance |
Tokens | YFI, SUSHI, AAVE, LINK, SNX |
Base | 0% |
Multiplier | 27% |
JumpMultiplier | 900% |
Kink 1 | 80% |
Kink 2 | 90% |
Contract Address |
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