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Interest Rate Model
Coslend use Jump model, the interest rate curve is split in two parts around an optimal utilisation rate
The borrow interest rate
follows the model:
the slope is small, after it starts rising sharply.
The borrow interest rates paid are distributed as yield for cToken holders who have supplied in the protocol, excluding a share of yields sent to the ecosystem reserve defined by the reserve factor. This interest rate is paid on the capital that is lent out then shared among all the liquidity providers.
The supply interest rate,
- , the utilization ratio
- , the borrow rate
- , the reserve factor
borrowRateAPR = borrowRatePerSec * secsPerYear* 100 / 1e18
supplyRateAPR = supplyRatePerSec * secsPerYear* 100 / 1e18
borrowRateAPY = ((1 + borrowRatePerBlock/1e18) ** secsPerYear - 1) * 100
supplyRateAPY = ((1 + supplyRatePerBlock /1e18) ** secsPerYear - 1) * 100
**SecsPerYear = 60*60*24*365 = 31,536,000