Interest Rate Model
Bend’s 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 is used to manage liquidity risk through user incentivizes to support liquidity:
- When capital is available: lower interest rates to encourage loans.
- When capital is scarce: higher interest rates encourage repayments for the loans and additional deposits.
UtilizationRate | BaseRate | Slope1 | Slope2 |
|---|---|---|---|
45% | 20% | 16% | 200% |
Utilization Rate | Borrow Rate | Deposit Rate |
|---|---|---|
1.00% | 20.36% | 0.14% |
5.00% | 21.78% | 0.76% |
10.00% | 23.56% | 1.65% |
15.00% | 25.33% | 2.66% |
20.00% | 27.11% | 3.80% |
25.00% | 28.89% | 5.06% |
30.00% | 30.67% | 6.44% |
35.00% | 32.44% | 7.95% |
40.00% | 34.22% | 9.58% |
45.00% | 36.00% | 11.34% |
50.00% | 54.18% | 18.96% |
55.00% | 72.36% | 27.86% |
60.00% | 90.55% | 38.03% |
65.00% | 108.73% | 49.47% |
70.00% | 126.91% | 62.19% |
75.00% | 145.09% | 76.17% |
80.00% | 163.27% | 91.43% |
85.00% | 181.45% | 107.96% |
90.00% | 199.64% | 125.77% |
95.00% | 217.82% | 144.85% |
100.00% | 236.00% | 165.20% |
UtilizationRate | BaseRate | Slope1 | Slope2 |
|---|---|---|---|
80% | 20% | 8% | 100% |
Utilization Rate | Borrow Rate | Deposit Rate |
|---|---|---|
1.00% | 20.10% | 0.14% |
5.00% | 20.50% | 0.72% |
10.00% | 21.00% | 1.47% |
15.00% | 21.50% | 2.26% |
20.00% | 22.00% | 3.08% |
25.00% | 22.50% | 3.94% |
30.00% | 23.00% | 4.83% |
35.00% | 23.50% | 5.76% |
40.00% | 24.00% | 6.72% |
45.00% | 24.50% | 7.72% |
50.00% | 25.00% | 8.75% |
55.00% | 25.50% | 9.82% |
60.00% | 26.00% | 10.92% |
65.00% | 26.50% | 12.06% |
70.00% | 27.00% | 13.23% |
75.00% | 27.50% | 14.44% |
80.00% | 28.00% | 15.68% |
85.00% | 53.00% | 31.54% |
90.00% | 78.00% | 49.14% |
95.00% | 103.00% | 68.50% |
100.00% | 128.00% | 89.60% |
UtilizationRate | BaseRate | Slope1 | Slope2 |
|---|---|---|---|
65% | 10% | 8% | 100% |
Utilization Rate | Borrow Rate | Deposit Rate |
|---|---|---|
1.00% | 10.12% | 0.07% |
5.00% | 10.62% | 0.37% |
10.00% | 11.23% | 0.79% |
15.00% | 11.85% | 1.24% |
20.00% | 12.46% | 1.74% |
25.00% | 13.08% | 2.29% |
30.00% | 13.69% | 2.87% |
35.00% | 14.31% | 3.51% |
40.00% | 14.92% | 4.18% |
45.00% | 15.54% | 4.90% |
50.00% | 16.15% | 5.65% |
55.00% | 16.77% | 6.46% |
60.00% | 17.38% | 7.30% |
65.00% | 18.00% | 8.19% |
70.00% | 32.29% | 15.82% |
75.00% | 46.57% | 24.45% |
80.00% | 60.86% | 34.08% |
85.00% | 75.14% | 44.71% |
90.00% | 89.43% | 56.34% |
95.00% | 103.71% | 68.97% |
100.00% | 118.00% | 82.60% |
Last modified 8mo ago