Interest Rate Variables
These control how much borrowers pay for using CLP credit and how much CLPs earn.
Utilization Rate
Whitepaper
u
Credit utilization ratio
Litepaper
u
Fraction of CLP funds in use
Solidity
utilization
Calculated as totalReserved / totalSupplied
Plain English
What percentage of available CLP funds are currently being used
Interest Rate Function
Whitepaper
IR(u)
Curved interest rate model
Litepaper
IR(u)
Simplified presentation
Solidity
computeInterestRate()
Implemented in IRMTwyneCurve contract
Plain English
The function that determines interest rates based on utilization
Siphoning Rate
Whitepaper
r_C
Rate at which collateral is “siphoned” to CLPs
Litepaper
r_C
Borrower’s interest payment rate
Solidity
N/A
Siphoning rate is handled by credit vault's interest rate curve
Plain English
The interest rate borrowers pay on reserved CLP funds
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