Interest Rate (Jump Rate Model)

Jump Rate Model

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

V1 Deployment

Initial Parameters Setup

👇 Example Interest Rate Chat

Example interest rate chart.

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