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# Borrowing rates

The pre-kink multiplier of a pool is
$M_{x}$
and post-kink is
$M_{y}$
. Additionally included (but set at 0 for all pools initially) is a fixed flat interest rate
$F$
is managed through governance. Borrower’s interest rates are calculated using this formula:
$BorrowRate_{a} =\begin{cases}F + Pool_{a}Util* M_{x}\, if \,Pool Util \leq Util_{optimal}\\F + Pool_{a}Util* M_{y}\, if \,Pool Util > Util_{optimal}\end{cases}$
$Util_{optimal}$
is set at 80% to begin in both stable coin pools as well as variable asset value tokens.