Interest Rate Curve
Fenture utilizes Aave’ s interest rate model which is calibrated to manage liquidity risk and optimise utilisation. The use of the protocol determines the rate automatically.
Interest Rate Parameters
: (Utlisation Rate) is an indicator of the availability of capital within the pool. The optimal utilisation rate U optimal split the interest rate curve into two parts to manage liquidity risk in the pool.
Base Variable Borrow Rate
Variable Rate Slope 1
Variable Rate Slope 2
Interest Rate Model
When ​, the borrow interest rates increase slowly with utilization.
When , the borrow interest rates increase sharply to incentivize more deposit and avoid liquidity risk.
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