Interest Rates
Rates on Fund follow utilisation: the share of a pool that is borrowed. A pool with $1,000 supplied and $600 borrowed is 60% utilised.
The rate curve
Each pool has a borrow rate curve. Below a target utilisation, the borrow rate rises slowly. Above it, the rate rises steeply, which pulls repayments in and new supply toward the pool so suppliers can always withdraw.
The Markets page draws each pool's curve under Rate Model, with a dashed line at today's utilisation, and its past rates under History.
What suppliers earn
Suppliers share the interest borrowers pay. A part of that interest, the reserve factor, is kept as a reserve for the protocol. So the supply APY is the borrow APY, times utilisation, times what is left after the reserve factor.
These numbers are an example, not Fund's settings.
Borrow APY 8%, utilisation 60%, reserve factor 10%.
Supply APY = 8% x 60% x 90% = 4.32%.
APY, not APR
Fund shows APY: the yearly rate including compounding, because interest is added to balances continuously.
Rate curves, reserve factors and any fees are published here before supply opens, and shown live on the Markets page.
Start using Fund
Supply to earn, or borrow against your tokens.
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