Market Parameters

Interest Rate Market Parameters

Parameters
Details

Loan to Value (LTV ratio)

Loan-to-value (LTV) is the ratio describing how much you can borrow against your collateral.

Close Factor

The percent, ranging from 0% to 100%, of a liquidatable account’s borrow that can be repaid in a single liquidate transaction. A liquidator may close up to a certain fixed percentage (i.e. close factor) of any individual outstanding borrow of the underwater account.

Liquidation Incentive

The additional collateral given to liquidators as an incentive to perform liquidation of underwater accounts.

Max Borrow APY

Maximum possible borrow APY

Target Borrow APY

Borrow APY when Current Utilization is equal to Target Utilization

Traget Utilization (Kink Point)

When utilization goes above the target utilization, interest rates are more sensitive to changes in utilization.

Current Utilization

CurrentUtilization = totalBorrows / (totalCash + totalBorrows - total Reserves) Current Utilization determines the interest rate of each market.

Reserves

Reserves are an accounting entry in each pToken contract that represents a portion of historical interest set aside which can be withdrawn or transferred through the protocol’s governance.

Reserve Factor

The reserve factor defines the portion of borrower interest that is converted into Reserves.

pFRA minted

see pToken

Exchange Rate

see pToken

Last updated