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

Utilization Rate

dAMM pool interest rates are a factor of several variables: the demand of the token from institutional borrowers and market makers, the quantity of tokens supplied by Token Suppliers, and finally the base interest rate of the pool as determined by the specific pool token.

Poola Utilization Rate=TotalTokenaBorrowed(TotalTokenaBorrowed+RemainingTokena) Pool_{a}\ Utilization\,Rate = \frac{Total Token_{a}Borrowed}{(Total Token_{a}Borrowed + Remaining Token_{a}) } Poola​ UtilizationRate=(TotalTokena​Borrowed+RemainingTokena​)TotalTokena​Borrowed​

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Last updated 2 years ago

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