Sonne
  • Introduction
  • Getting Started
    • Wallet
    • FAQ & Troubleshoot
    • Video Guide
  • PROTOCOL
    • Contract Addresses
    • Liquidation
    • Collateral and Reserves (Optimism)
    • Collateral and Reserves (Base)
    • Interest Rate Model
    • Audit
  • TOKENOMICS
    • Liquidity Generation Event(LGE)
    • Distribution
    • Reward Emissions and Bribes
    • The Idea of Andre Cronje
    • Staking and Revenue Sharing
  • Other Information
    • Branding
    • Legal Disclaimer
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  • Borrow APR
  • Supply APR
  1. PROTOCOL

Interest Rate Model

Borrow APR

The interest rate model for borrowed assets can be calculated using the following formula:

= Base + Multiplier * min(UtilizationRate, Kink) + max(JumpMultiplier * UtilizationRate - Kink, 0)

Supply APR

The interest rate model for supplying assets can be calculated using the following formula:

= Distribute (Interest Paid by Borrowers Per Block - Reserve) to all suppliers, and convert it into APY

= Distribute [(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) to all suppliers, and convert it into APY

= {[(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) / Total Supply}, and convert it into APY

= {1 + [(1 + Borrow APY) ^ (1/BlocksPerYear) - 1] * Total Borrow * (1 - Reserve Factor) / Total Supply} ^ BlocksPerYear - 1

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Last updated 1 year ago