# 3. Interest rates and rewards

BendDAO is the first decentralized Peer-to-Pool based NFT liquidity protocol. The interest rates are decided by the demand and supply.

3.1. Interest Rate calculation

3.3. $BEND token rewards calculation

### 3.1. Interest Rate Calculation

BendDAO uses a variable interest rate model, for which information can be found on this page.

UtilizationRate: Here it means the "kink" in the utilization rate of ETH deposits, i.e. the rate will rise very quickly if the utilization rate of ETH deposits exceeds this "kink".

BaseRate: The prime rate, i.e. the minimum rate.

### 3.2. My interest rate

On the BendDAO home page, we can see the APR of the interest rate that the borrower has to pay, and each block is adjusted according to the ETH utilization.

Interest APR (Paid in ETH): The annual interest rate that the borrower needs to pay, which needs to be paid in ETH.

Borrowing * APR = APR to be paid

On the “My NFTs” page:

Total interest: The sum of the interest paid on each loan + the current interest to be paid

Total debt: The sum of current debt, current borrowing + current interest.

### 3.3. $BEND token rewards calculation

According to BendDAO's token economics, 40% of the $BEND tokens will be rewarded to both lenders and borrowers, released linearly over a five-year period.

Borrower: 75%

Lender: 25%

On the BendDAO home page, you can see the APR of the reward.

Reward APR (Earned in BEND): The APR that the borrower can earn (issued $BEND tokens).

Borrowed amount (ETH amount) * APR = Annual Earned in Bend (Reward is issued in Bend and the current ETH/BEND exchange rate is used to convert the ETH amount)

### 3.4. My Rewards

Go to the “homepage - Dashboard - Rewards” page.

Total rewarded: the sum of the rewards claimed each time

Click “Claim your rewards” to receive your rewards.

*By the Community Contributor **@defiandnft** *

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