Supply Rate

Liquidity providers can earn interest returns based on market dynamics, borrowing and lending activities, and the availability of funds within the protocol. The rates are determined by algorithms that consider supply, demand, and participant activities.

Weighted Average Cost of Borrowing

Rtˉ=variable debttotal debt×Rvariable+stable debttotal debt×Rstable\bar{R_t} = \frac{variable\ debt}{total\ debt} \times {R_{variable}} + \frac{stable\ debt}{total\ debt} \times {R_{stable}}

Interest Rate of Deposit

LRt=RtˉUt×(1Reserve Factor){LR}_t = \bar{R_t}{ U_t} \times (1 - Reserve\ Factor)

UtU_t is Current liquidity pool utilization rate

Reserve Factor

The actual compound interest calculation formula for users' deposit interest, which increases over time, is as follows:

Actual APY=(1+Theoretical APYsecsperyear)secsperyear1Actual\ APY = (1+\frac{Theoretical\ APY}{secsperyear})^{secsperyear}-1

Earning interest on the portion of their assets borrowed by others.

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