Mage Finance
  • ๐Ÿง™โ€โ™‚๏ธWelcome
    • Introduction to Mage
    • Mage Token
  • ๐ŸŽ‘Mana Points
    • Mage Mana Program
  • ๐Ÿช„mage protocol
    • Decentralized BTC Money Market
      • Merlin Hub and BTC Hub
      • Interoperability with Mage Chain
    • User Guides
      • Bridge assets to Merlin Chain
      • Supply and Withdraw
      • Borrow and Repay
      • Manage Position Risks
      • Annual Percentage Yield (APY)
    • Protocol
      • mToken
      • Liquidation
      • Interest Rate Model
      • Price Oracle
      • Contract Addresses
      • Parameters
    • Risks and Security Measures
      • Risks
      • Security Measures
  • ๐Ÿ”ฎMage Chain
    • Bitcoin Layer3 AppChain
  • ๐Ÿ“–EXTRAS
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Interest Rate Model

Mage protocol 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 โ€œkinkโ€ - above this point the interest rate increases more rapidly. Interest accrues every second using the block timestamp.

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Last updated 1 year ago

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