Deposit interest rate
- After the user deposits a certain token, the deposit interest will be calculated according to the real-time deposit APY of the token. The exchange rate of bToken will be updated.
- When the user withdraws the deposit, the system uses the exchange rate of bToken to calculate the capital and interest that the user deserves.
- Deposit APY = loan annualized rate × utilization rate × (1-reserve factor)
Loan interest rate
- After the user borrows a certain token, the loan interest rate will be calculated according to the real-time loan annualized rate of the token.
- Loan interest is calculated based on the token of the loan.
- During the unpaid loan period, the loan interest generated will have an impact on the health factor, and the health factor will gradually decrease until 1 to trigger liquidation.
- When the current utilization rate is less than the target utilization rate, the loan annualized rate= initial rate R0 + (current utilization rate/target utilization rate)/ maximum rate R1.
- When the current utilization rate is bigger than the target utilization rate, the loan annualized rate= initial rate R0 + maximum rate R1 + (current utilization rate-target utilization rate) / (1- target utilization rate) * maximum rate R2.