Supply Rate Methodology

Borrow interest rates paid are distributed as yield for aToken holders who have supplied assets in the protocol, excluding a share of yields sent to the ecosystem reserve defined by the reserve factor on a per asset basis.

The deposit (supply) interest rate is paid on assets supplied, which is shared amongst all liquidity providers. The deposit APY $D_t$ is:

$$D_t = U_t(VB_tV_t)(1 - R_t)$$

• $U_t$ = the utilization ratio

• $VB_t$ = the share of variable borrows

• $V_t$ = the variable rate

• $R_t$ = the reserve factor