Model for Flip loans

is simplified

Interest Rate Model

The interest rate $R_t$ for Flip loans:

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

Asset

Uoptimal

Rslope1

SOL

100%

10%

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

Last updated 2 years ago

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

Rslope1

SOL

100%

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