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Quantitative Finance · शब्दावली

Lending pool, kinked interest-rate curve क्या है?

अन्य नाम: lending pool · kinked interest-rate curve

Definition 23.1 Markets III: Commodities, Energy and Crypto · अध्याय 23 — DeFi Credit and Leverage

A lending pool is a smart contract that takes deposits of a token from suppliers and lends them to borrowers who post other tokens as collateral, paying suppliers the interest borrowers pay less a share kept by the protocol. A kinked interest-rate curve sets the borrow rate as a function of the pool’s utilisation, rising gently up to a target utilisation and steeply beyond it.

A kinked interest-rate curve: 4% at the 90% optimal utilisation, rising by 60 points more to full utilisation, and the supply rate it implies with a 10% reserve factor (). Illustrative parameters of the two-slope form. Data: the chapter’s tutorial.
Figure 23.1. A kinked interest-rate curve: 4% at the 90% optimal utilisation, rising by 60 points more to full utilisation, and the supply rate it implies with a 10% reserve factor (Proposition 23.2). Illustrative parameters of the two-slope form. Data: the chapter’s tutorial.
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