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 = 2,628,000 (12 sec per block)

Find other variables in Markets

Parameter by Token Category

Major

ParameterValue

Tokens

WBTC, wstETH

Base

0%

Multiplier

17.5%

JumpMultiplier

200%

Kink 1

80%

Kink 2

90%

Contract Address

WETH

ParameterValue

Tokens

WETH

Base

0%

Multiplier

12.5%

JumpMultiplier

250%

Kink 1

80%

Kink 2

90%

Contract Address

Stable

ParameterValue

Tokens

USDT, USDC, DAI, sUSD, EURS, sEUR, MIM, ibKRW, ibCHF, ibGBP, ibEUR, ibAUD, ibJPY

Base

0%

Multiplier

13%

JumpMultiplier

800%

Kink 1

80%

Kink 2

90%

Contract Address

Governance

ParameterValue

Tokens

LINK, YFI, SNX, DPI, UNI, SUSHI, CRV, AAVE, CVX

Base

0%

Multiplier

20%

JumpMultiplier

500%

Kink 1

70%

Kink 2

80%

Contract Address

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