Interest Rate (Jump Rate Model)
Last updated
Last updated
Forlend features a dynamic interest rate model. Interest rate on each market is different and is calculated based on the Current Utilization of a given market (how much of the supplied liquidity is borrowed v.s. available). Forlend's interest model follows Compound Protocol's Jump Rate model.
When the Current Utilization rate increases, both the borrowing rate and supply rate will increase.
When Current Utilization is lower than Target Utilization (the kink point), the borrowing rate will increase at a lower rate linearly.
When Current Utilization is over Target Utilization (the kink point), the borrowing rate will increase at a higher rate linearly.
Each "Market" has its own interest rate based on Market Parameters and Current Utilization rates.
supplyRate = borrowRate * (1- reserveFactor) * utilizationRate
when currentUtilization <= targetUtilization:
borrowRate = baseRate + utilizationRate * multiplier
when currentUtilization > targetUtilization:
borrowRate = baseRate +utilizationRate * multiplier + (utilizationRate - targetUtilization)*jumpMultiplier
👇 Example Interest Rate Chat
Lending Protocol
borrow% at 0%
borrow% at K
borrow% at 100%
Kink
reserver%
0.00 %
10.00 %
100.00 %
60.00 %
25.00 %
Contructor
blocksPerYear
baseRatePerYear
multiplierPerYear
jumpMultiplierPerYear
kink_
1971000
0
100000000000000000
2250000000000000000
600000000000000000
Property
baseRatePerBlock
multiplierPerBlock
jumpMultiplierPerBlock
kink
reserve
0
84559445290
1141552511416
600000000000000000
250000000000000000
Utilization %
Borrow %
Supply %
util
b% per block
s% per block
0.00 %
0.0000 %
0.0000 %
0
0
0
1.00 %
0.1667 %
0.0012 %
1E+16
845594452.9
6341958.397
2.00 %
0.3333 %
0.0050 %
2E+16
1691188906
25367833.59
3.00 %
0.5000 %
0.0112 %
3E+16
2536783359
57077625.57
4.00 %
0.6667 %
0.0200 %
4E+16
3382377812
101471334.3
5.00 %
0.8333 %
0.0312 %
5E+16
4227972265
158548959.9
6.00 %
1.0000 %
0.0450 %
6E+16
5073566717
228310502.3
7.00 %
1.1667 %
0.0612 %
7E+16
5919161170
310755961.4
8.00 %
1.3333 %
0.0800 %
8E+16
6764755623
405885337.4
9.00 %
1.5000 %
0.1012 %
9E+16
7610350076
513698630.1
10.00 %
1.6667 %
0.1250 %
1E+17
8455944529
634195839.7
11.00 %
1.8333 %
0.1512 %
1.1E+17
9301538982
767376966
12.00 %
2.0000 %
0.1800 %
1.2E+17
10147133435
913242009.1
13.00 %
2.1667 %
0.2112 %
1.3E+17
10992727888
1071790969
14.00 %
2.3333 %
0.2450 %
1.4E+17
11838322341
1243023846
15.00 %
2.5000 %
0.2812 %
1.5E+17
12683916794
1426940639
16.00 %
2.6667 %
0.3200 %
1.6E+17
13529511246
1623541350
17.00 %
2.8333 %
0.3612 %
1.7E+17
14375105699
1832825977
18.00 %
3.0000 %
0.4050 %
1.8E+17
15220700152
2054794521
19.00 %
3.1667 %
0.4512 %
1.9E+17
16066294605
2289446981
20.00 %
3.3333 %
0.5000 %
2E+17
16911889058
2536783359
21.00 %
3.5000 %
0.5512 %
2.1E+17
17757483511
2796803653
22.00 %
3.6667 %
0.6050 %
2.2E+17
18603077964
3069507864
23.00 %
3.8333 %
0.6612 %
2.3E+17
19448672417
3354895992
24.00 %
4.0000 %
0.7200 %
2.4E+17
20294266870
3652968037
