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Interest Rate Curve
Aries Lend utilizes Aave’ s interest rate model which is calibrated to manage liquidity risk and optimise utilisation. The rate is automatically determined by the utilisation of the protocol.
- :(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
, the borrow interest rates increase slowly with utilization.
, the borrow interest rates increase sharply to incentivize more deposit and avoid liquidity risk.