dAMM Finance
  • Introduction
    • Abstract
    • The Space
    • The Issues
  • The dAMM Protocol
    • What is dAMM?
    • Understanding dAMM Pools
    • Supply APY
    • Token Borrowers
  • dAMM Token
    • dAMM Utility
    • bdAMM
    • Boosted Pools
    • Governance
  • Interest Rate Model
    • Utilization Rate
    • Borrowing rates
    • Supplier Rates
  • Conclusion
    • Roadmap
    • Future Goals of the Protocol
    • Summary
    • Contract Addresses
  • Security Audit:
    • Dedaub Security Audit of dAMM Finance
  • References
    • [1] Market Making Proposal 1
    • [2] Market Making Proposal 2
    • [3] Notable Recent Exploit
    • [4] Impermanent Loss in Uniswap V3
    • [5] How Liquidity Provider (LP) Tokens Work
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  1. Interest Rate Model

Supplier Rates

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

Supplier Ratea=BorrowRatea ∗Poola Util ∗(1−rFactor)Supplier\,Rate_{a}=BorrowRate_{a}\,*Pool_{a}\,Util\,* (1-rFactor)SupplierRatea​=BorrowRatea​∗Poola​Util∗(1−rFactor)

Where rFactorrFactorrFactor 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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Last updated 2 years ago

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