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)
Parameter by Token Type
Major
Parameter
Value
Tokens
WETH, WBTC
Base
0%
Multiplier
17.5%
JumpMultiplier
200%
Kink 1
80%
Kink 2
90%
Contract Address
Stable
Parameter
Value
Tokens
sUSD, EURS, sEUR, EUR, KRW, JPY, AUD, GBP, CHF, MIM, ZAR
Base
0%
Multiplier
13%
JumpMultiplier
800%
Kink 1
80%
Kink 2
90%
Contract Address
3 Stables
Parameter
Value
Tokens
DAI, USDC, USDT
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, APE
Base
0%
Multiplier
27%
JumpMultiplier
900%
Kink 1
80%
Kink 2
90%
Contract Address
Last modified 2mo ago