Interest Rate Variables

These control how much borrowers pay for using CLP credit and how much CLPs earn.

Utilization Rate

Context	Notation	Description
Whitepaper	u	Credit utilization ratio
Litepaper	u	Fraction of CLP funds in use
Solidity	NA	Tracked by credit vault using total borrowed and available cash
Plain English	What percentage of available CLP funds are currently being used

Interest Rate Function

Context	Notation	Description
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

Context	Notation	Description
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