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 = 2,102,400 (15 sec per block)
Find other variables in Markets

Parameter by Token Category

Major

Parameter
Value
Tokens
WBTC
Base
0%
Multiplier
17.5%
JumpMultiplier
200%
Kink 1
80%
Kink 2
90%

WETH

Parameter
Value
Tokens
WETH
Base
0%
Multiplier
12.5%
JumpMultiplier
250%
Kink 1
80%
Kink 2
90%

Stable

Parameter
Value
Tokens
USDT, USDC, DAI, sUSD, EURS, sEUR, ibEUR, ibKRW, ibJPY, ibAUD, ibGBP, ibCHF, ibZAR, MIM
Base
0%
Multiplier
13%
JumpMultiplier
800%
Kink 1
80%
Kink 2
90%

Governance

Parameter
Value
Tokens
LINK, YFI, SNX, DPI, UNI, SUSHI, CRV, AAVE, CVX
Base
0%
Multiplier
20%
JumpMultiplier
500%
Kink 1
70%
Kink 2
80%
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APY Function
Borrow APY
Supply APY
Parameter by Token Category
Major
WETH
Stable
Governance