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Supplier Rates

The pool’s utilization multiplier MM and current borrowing rate is managed through governance. And the supplier’s interest rate is calculated as:

SupplierRatea=BorrowRateaPoolaUtil(1rFactor)Supplier\,Rate_{a}=BorrowRate_{a}\,*Pool_{a}\,Util\,* (1-rFactor)

Where rFactorrFactor is the percentage of revenue from borrowers paid back to the protocol insurance pool. It will be managed by the dAMM governance, and is initially set to 25%.

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