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
| Parameter | Value |
|---|---|
Tokens | WBTC, wstETH |
Base | 0% |
Multiplier | 17.5% |
JumpMultiplier | 200% |
Kink 1 | 80% |
Kink 2 | 90% |
Contract Address |
WETH
| Parameter | Value |
|---|---|
Tokens | WETH |
Base | 0% |
Multiplier | 12.5% |
JumpMultiplier | 250% |
Kink 1 | 80% |
Kink 2 | 90% |
Contract Address |
Stable
| Parameter | Value |
|---|---|
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
| Parameter | Value |
|---|---|
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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