Interest Rate Model

The Current interest rate is determined by the Utilization Ratio (U). As U increases, the borrow interest rises, encouraging users to deposit more assets. When U = 100%, it means there are no assets left in the pool to be borrowed.

Utilization Ratio

// // Utilization
U = Borrows / (Cash + Borrows - Reserves)

Borrow Interest Rate

BaseRate, Kink1, Kink2, Mult1, Mult2, Mult3
r_borrow(U) =
    BaseRate + U * Mult1,
        if U <= Kink1

    BaseRate + Kink1 * Mult1
             + (U - Kink1) * Mult2,
        if Kink1 < U <= Kink2

    BaseRate + Kink1 * Mult1
             + (Kink2 - Kink1) * Mult2
             + (U - Kink2) * Mult3,
        if U > Kink2

Supply Interest Rate

// def Current supply interest rate(current borrow interest rate, U, reserve_factor,):          
    Current supply interest rate = U * current borrow interest rate * (1 - reserve_factor) 

Interest Rate Spreads

Asset(s)	Market	Interest Rate Spreads
SUI	Main Market	11%
USDC	Main Market	15%
USDT	Main Market	15%
BTC	Main Market	15%
ETH	Main Market	15%
SUI	XSUI Marekt	2%
DEEP	Altcoin Market	20%
WAL	Altcoin Market	20%