Simplified Interest Model
For Flip loans
When capital is available: low interest rates to encourage loans.
When capital is scarce: high interest rates to encourage additional deposits.
Base Interest Rate 2%
Last updated
For Flip loans
When capital is available: low interest rates to encourage loans.
When capital is scarce: high interest rates to encourage additional deposits.
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 Flip loans is used to manage liquidity risk through user incentivizes to support liquidity:
| Utilization Rate (%) | Flat Borrow Rate (%) | Flat Deposit Rate (%) |
|---|---|---|
1
2.1
1.68
5
2.5
2
10
3
2.4
15
3.5
2.8
20
4
3.2
25
4.5
3.6
30
5
4
35
5.5
4.4
40
6
4.8
45
6.5
5.2
50
7
5.6
55
7.5
6
60
8
6.4
65
8.5
6.8
70
9
7.2
75
9.5
7.6
80
10
8
85
10,5
8.4
90
11
8.8
95
11,5
9.2
100
12
9.6