Interest Rate Model

borrowing rate of lending pools

Interest ModelTypicial Assets

Interest Rate Model 1: Borrowing rate applicable for assets with high market cap.


Interest Rate Model 2: Borrowing rate applicable for most assets.


Interest Rate Model 3: Borrowing rate applicable for Stable Pool & LST Pools.

USDC (for sAMM pools) DOLA FRAX USDR wstETH and other stable or LST assets

Specifically, for stable and LST(Liquidity Staking Assets) pools, an interest rate model is introduced that aligns with the characteristics of 1) pegging and 2) a lower farming APY compared to volatile pools. This interest model functions similarly to a fixed borrowing rate mechanism before it hits a utilization threshold.

It's important to note that the 5% fixed borrowing rate in the chart below is not a static figure but rather subject to market conditions and borrowing demand. The parameter will be regularly reviewed and updated under a governance procedure.

Read more about the interest rate model here:

pagePseudo-Fixed-Interest-Rate Model

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