Interest Model
For Perpetual loans
FRAKTβs interest rate model is calibrated to manage liquidity risk and optimize utilization. The borrow interest rates come from the Utilization Rate .
is an indicator of the availability of capital in the pool. The interest rate model for Perpetual loans is used to manage liquidity risk through user incentivizes to support liquidity:
When capital is available: low interest rates to encourage loans.
When capital is scarce: high interest rates to encourage repayments for the loans and additional deposits.
Borrow Interest Rate Curve
Deposit Interest Rate Curve
Base Interest Rate 3%
Utilization Rate (%) | Yearly Borrow Rate (%) | Yearly Deposit Rate (%) |
---|---|---|
1 | 4.37 | 0.03 |
5 | 8.05 | 0.25 |
10 | 12.65 | 0.77 |
15 | 17.25 | 1.58 |
20 | 21.85 | 2.66 |
25 | 26.45 | 4.03 |
30 | 31.05 | 5.67 |
35 | 35.65 | 7.60 |
40 | 40.25 | 9.80 |
45 | 44.85 | 12.29 |
50 | 49.45 | 15.05 |
55 | 60.95 | 20.41 |
60 | 72.45 | 26.46 |
65 | 83.95 | 33.22 |
70 | 95.45 | 40.67 |
75 | 106.95 | 48.83 |
80 | 118.45 | 57.68 |
85 | 129.95 | 67.24 |
90 | 141.45 | 77.49 |
95 | 152.95 | 88.45 |
100 | 164.45 | 100.10 |
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