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Interest 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: low interest rates to encourage loans.
- When capital is scarce: high interest rates to encourage repayments for the loans and additional deposits.
Borrow Interest Rate Curve
Deposit Interest Rate Curve
Interest Rate Models
We have listed three different sets of base interest rate models, and the final interest rate model will be decided by the community through voting.
Base Interet Rate 3%
Utilization Rate(%)
Borrow Rate(%)
Deposit Rate(%)
1
3.12
0.02
5
3.62
0.13
10
4.23
0.3
15
4.85
0.51
20
5.46
0.76
25
6.08
1.06
30
6.69
1.4
35
7.31
1.79
40
7.92
2.22
45
8.54
2.69
50
9.15
3.2
55
9.77
3.76
60
10.38
4.36
65
11
5.01
70
25.29
12.39
75
39.57
20.77
80
53.86
30.16
85
68.14
40.54
90
82.43
51.93
95
96.71
64.31
Base Interest Rate 5%
Utilization Rate(%)
Borrow Rate(%)
Deposit Rate(%)
1
5.12
0.04
5
5.62
0.2
10
6.23
0.44
15
6.85
0.72
20
7.46
1.04
25
8.08
1.41
30
8.69
1.82
35
9.31
2.28
40
9.92
2.78
45
10.54
3.32
50
11.15
3.9
55
11.77
4.53
60
12.38
5.2
65
13
5.92
70
27.29
13.37
75
41.57
21.82
80
55.86
31.28
85
70.14
41.73
90
84.43
53.19
95
98.71
65.64
Base Interest Rate 10%
Utilization Rate(%)
Borrow Rate(%)
Deposit Rate(%)
1
10.12
0.07
5
10.62
0.37
10
11.23
0.79
15
11.85
1.24
20
12.46
1.74
25
13.08
2.29
30
13.69
2.87
35
14.31
3.51
40
14.92
4.18
45
15.54
4.9
50
16.15
5.65
55
16.77
6.46
60
17.38
7.3
65
18
8.19
70
32.29
15.82
75
46.57
24.45
80
60.86
34.08
85
75.14
44.71
90
89.43
56.34
95
103.71
68.97
Last modified 2mo ago