Interest Model
For Perpetual loans
Last updated
For Perpetual loans
Last updated
FRAKTâs 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.
| 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
