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%

Last modified 3mo ago

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Borrow Rate Model

FRA

FAIRY

BTC

ETH

BNB

USDT

USDC

BUSD