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

ParameterValue

Category

Major

Tokens

WETH, WBTC

Base

0%

Multiplier

15%

JumpMultiplier

500%

Kink 1

80%

Kink 2

90%

Contract Address

Stable

ParameterValue

Category

Stable

Tokens

USDT, sUSD

Base

0%

Multiplier

18%

JumpMultiplier

800%

Kink 1

80%

Kink 2

90%

Contract Address

USDC & DAI

ParameterValue

Category

Stable

Tokens

USDC, DAI

Base

0%

Multiplier

13%

JumpMultiplier

800%

Kink 1

80%

Kink 2

90%

Contract Address

Gov

ParametersValue

Category

Governance

Tokens

SNX

Base

0%

Multiplier

20%

JumpMultiplier

500%

Kink 1

70%

Kink 2

80%

Contract Address

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