📈Interest Rate Model
APY Function
The parameters below are borrowing major coins
Borrow APY
= {1 + [BaseRatePerSecond + MultiplierPerSecond * min(UtilizationRate, Kink1) + max(JumpMultiplierPerSecond1 * UtilizationRate - Kink2,0) * JumpMultiplierPerSecond2] / SecondsPerYear } ^ SecondsPerYear - 1
Where:
UtilizationRate = Borrows / (Cash + Borrows - Reserves)
SecondsPerYear = 31,557,600 (accounting for leap years)
Supply APY
= Distribute (Interest Paid by Borrowers Per Second - Reserve) to all suppliers, and convert it into APY
= Distribute [(1 + Borrow APY) ^ (1 / SecondsPerYear) - 1] * Total Borrow * (1 - Reserve Factor) to all suppliers, and convert it into APY
= {[(1 + Borrow APY) ^ (1 / SecondsPerYear) - 1] * Total Borrow * (1 - Reserve Factor) / Total Supply}, and convert it into APY
= {1 + [(1 + Borrow APY) ^ (1 / SecondsPerYear) - 1] * Total Borrow * (1 - Reserve Factor) / Total Supply} ^ SecondsPerYear - 1
= {1+[(1+Borrow APY)^(1/SecondsPerYear)-1]*(1-Reserve Factor)*Utilization Rate}^SecondsPerYear-1
Where:
BorrowRate = BaseRatePerSecond + MultiplierPerSecond * UtilizationRate (if UtilizationRate <= Kink1) or BaseRatePerSecond + JumpMultiplierPerSecond1 * UtilizationRate (if UtilizationRate > Kink1 and UtilizationRate <= Kink2) or BaseRatePerSecond + JumpMultiplierPerSecond1 * Kink2 + (UtilizationRate - Kink2) * JumpMultiplierPerSecond2 (if UtilizationRate > Kink2)
UtilizationRate = Borrows / (Cash + Borrows - Reserves)
ReserveFactor = Reserve Factor Mantissa
Parameter
Major
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