Interest Rate Model

EraLend’s adopts an interest rate model that scales with utilization rate, for both depositing and borrowing interest rates. When utilization rate is high, the interest incurred on borrowers will scale up, similar to that of interest payout to depositors, encouraging more assets deposit to maintain protocol solvency.

Both the supply and borrow interest rate models include a utilization rate “kink” - above this point the interest rate increases more rapidly. Interest accrues every second using the block timestamp.