Model for Flip loans

is simplified

Interest Rate Model

The interest rate $R_t$ for Flip loans:

$if U < U_{optimal}: R_t = (R_o + U_t / U_{optimal} * R_{slope1})$

Model parameters

Asset	Uoptimal	Ro	Rslope1
SOL	100%	2%	10%

Deposit APY

The deposit APY, $D_t$, is:

$D_t = B_t*(1-0.20)$

$U_t$: the utilisation ratio.

$B_t$: the variable borrow rate.

With *(1-0.20) being the 20% fees on Deposit APY