Parameters

Borrow Rate Model

Interest rates are dynamic and are calculated based on the utilization of a given market (how much of the supplied liquidity is available vs. borrowed). Poseidon Lend's interest model follows Compound Protocol's Jump Rate model.

The borrow rate model that Poseidon Finance adopts is as follows. When the utilization rate increases, both borrowing rate and supply rate will rise. When utilization rate is over the kink point, the borrow rate will soar at a higher rate.

FRA

Parameter	Value
Min borrow APY	0%
Optimal borrow APY	10%
Optimal utilization Rate	60%
Max borrow APY	100%
Reserve factor	25%
Collateral factor	60%

FAIRY

Parameter	Value
Min borrow APY	3%
Optimal borrow APY	12%
Optimal utilization Rate	60%
Max borrow APY	150%
Reserve factor	25%
Collateral factor	60%

BTC

Parameter	Value
Min borrow APY	0%
Optimal borrow APY	10%
Optimal utilization Rate	80%
Max borrow APY	100%
Reserve factor	20%
Collateral factor	80%

ETH

Parameter	Value
Min borrow APY	0%
Optimal borrow APY	10%
Optimal utilization rate	80%
Max borrow APY	100%
Reserve factor	20%
Collateral factor	80%

BNB

Parameter	Value
Min borrow APY	0%
Optimal borrow APY	10%
Optimal utilization Rate	80%
Max borrow APY	100%
Reserve factor	20%
Collateral factor	80%

USDT

Parameter	Value
Min borrow APY	0%
Optimal borrow APY	8%
Optimal utilization Rate	90%
Max borrow APY	50%
Reserve factor	10%
Collateral factor	85%

USDC

Parameter	Value
Min borrow APY	0%
Optimal borrow APY	8%
Optimal utilization rate	90%
Max borrow APY	50%
Reserve factor	10%
Collateral factor	85%

BUSD

Parameter	Value
Min borrow APY	0%
Optimal borrow APY	8%
Optimal utilization Rate	90%
Max borrow APY	50%
Reserve factor	10%
Collateral factor	85%