Lenders CLP Supply Rate

The CLP Supply Rate is the interest rate charged to borrowers for accessing the delegated borrowing power of Credit LPs. This rate is based on utilization — how much of the available CLP credit is currently reserved.

Sample interest rate curves with various variables

Twyne uses a curved interest rate model defined by:

u = CLP / C_total_LP

Where:

• CLP = amount of delegated credit in use

• C_total_LP = total credit capacity provided by all CLPs

• u = utilization rate (from 0 to 1)

The interest rate is calculated as:

IR(u) = (IR₀ / u₀) · u + (IR_max − (IR₀ / u₀)) · u^γ

With:

• IR₀ = base interest rate at low utilization

• IR_max = max interest rate at full utilization

• u₀ = kink point where the rate curve steepens

• γ = curvature factor (controls how sharply the rate ramps past the kink)

Example Curve Parameters:

• IR₀ = 10%, u₀ = 0.8, IR_max = 120%

• γ varies from 1.5 to 3+

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📈 Model Behavior

• Below u₀: Interest rate increases almost linearly

• Above u₀: Rate ramps steeply toward IR_max

• Designed to be gas-efficient and easy to compute on-chain

• Adapted from Keom Protocol's curved IR model

This flexible design achieves similar effects to "kinked" models (like Compound) but avoids complex on-chain logic like PID controllers.