🔢

Parameters

There is an explanation of the following parameters in Model Parameters.
A. Reserve Factor
η=10%\begin{align*} \eta = 10\% \end{align*}η=10%​
​η\etaη
 is the fraction of the total Variable Rate Pool supply selected as Liquidity Reserve.
B. Treasury Fee
λr=0%\begin{align*} \lambda_r = 0\% \end{align*}λr​=0%​
The treasury fee refers to the percentage of interest rate charges paid by borrowers that the protocol retains for its treasury.
​
C. Interest Rate Curves
Text
WETH
DAI
USDC
WBTC
wstETH
OP
Variable Rate Pools
​
​
​
​
​
​
​AAA
 =
1.9362e-2
1.7852e-2
1.4844e-2
3.6184e-2
1.9362e-2
2.8487e-2
​BBB
 =
-1.787e-3
-2.789e-3
1.9964e-4
-1.5925e-2
-1.787e-3
-5.8259e-3
​UmaxU_{max}Umax​
=
1.003870947
1.003568501
1.002968978
1.007213882
1.003870947
1.005690787
Fixed Rate Pools
​
​
​
​
​
​
​AAA
=
3.8126e-1
3.9281e-1
3.9281e-1
3.697e-1
3.8126e-1
3.5815e-1
​BBB
=
-3.6375e-1
-3.7781e-1
-3.7781e-1
-3.497e-1
-3.6375e-1
-3.3564e-1
​UmaxU_{max}Umax​
=
1.000010695
1.000014451
1.000014451
1.000007768
1.000010695
1.000005527
These parameters are utilized to calculate the effective borrow interest rate.
D. Risk Factors
Text
WETH
DAI
USDC
WBTC
wstETH
OP
​hohoho
(borrow/lend)
0.8400
0.9000
0.9100
0.8500
0.8200
0.3500
We associate a Risk-Adjust Factor to each asset to assess each collateral asset's borrow and lending power.
E. Variable Rate Pool Fee
δ=10%\begin{align*} \delta = 10\% \end{align*}δ=10%​
​δ\deltaδ
 is the fraction of the fixed interest rate fees retained by the Variable Rate Pool upon leaving the Fixed Rate Pool.
F. Supply E.M.A. Parameters
βslow=0.0046\begin{align*} \beta_{slow} = 0.0046 \end{align*}βslow​=0.0046​
The time decay parameter is used when the supply is above average.
βfast=0.4000\begin{align*} \beta_{fast} = 0.4000 \end{align*}βfast​=0.4000​
The time decay parameter is used when the supply is below average.
G. Target Solvency Ratio
Γ=1.25\begin{align*} \Gamma = 1.25 \end{align*}Γ=1.25​
Target solvency ratio after liquidation.
H. Liquidation Bonuses
νliquidator=5.00%νbad−debt=0.25%\begin{align*} \nu_{liquidator} = 5.00\% \\ \nu_{bad-debt} = 0.25\% \end{align*}νliquidator​=5.00%νbad−debt​=0.25%​
During the liquidation process, the liquidator gets a commission fee, and the Variable Rate Pool receives a percentage of extra liquidation fees to compensate for potential bad debt residuals.
I. Extraordinary Earnings Distribution Factor
ξextearn=2.00\begin{align*} \xi_{extearn} = 2.00 \end{align*}ξextearn​=2.00​
J. Penalty Rate
2.00%\begin{align*} 2.00\% \end{align*}2.00%​
Daily penalty rate fee charged to fixed interest rate borrowers who didn't pay their loans before the maturity day.

Text	WETH	DAI	USDC	WBTC	wstETH	OP
Variable Rate Pools
$A$ =	1.9362e-2	1.7852e-2	1.4844e-2	3.6184e-2	1.9362e-2	2.8487e-2
$B$ =	-1.787e-3	-2.789e-3	1.9964e-4	-1.5925e-2	-1.787e-3	-5.8259e-3
$U_{max}$ =	1.003870947	1.003568501	1.002968978	1.007213882	1.003870947	1.005690787
Fixed Rate Pools
$A$ =	3.8126e-1	3.9281e-1	3.9281e-1	3.697e-1	3.8126e-1	3.5815e-1
$B$ =	-3.6375e-1	-3.7781e-1	-3.7781e-1	-3.497e-1	-3.6375e-1	-3.3564e-1
$U_{max}$ =	1.000010695	1.000014451	1.000014451	1.000007768	1.000010695	1.000005527

Text	WETH	DAI	USDC	WBTC	wstETH	OP
$ho$ (borrow/lend)	0.8400	0.9000	0.9100	0.8500	0.8200	0.3500

Borrows

Next - Guides

Interest Rates Curves

Last modified 2d ago