Rates and fees

The borrowing rate changes with pool utilization according to a configured piecewise-linear curve. As the borrowed share of supplied liquidity changes, the applicable rate changes. An annualized rate displayed now is not a fixed rate for the lifetime of a position.

From borrow APR to supply APR

The estimated supply rate is:

Supply APR ≈ Borrow APR × Utilization × (1 − Protocol fee fraction)

As an illustration, a 10% borrow APR, 50% utilization and 25% protocol fee fraction produce a 3.75% supply APR. These are example inputs, not current market rates.

The protocol fee fraction applies to borrower interest, not to all supplied capital. Omitting utilization would overstate the supply rate when part of the pool is idle. The contract’s actual accounting and settlement, rather than this display approximation, determine entitlements.

Accrual and settlement

The pool tracks cumulative indices for borrowing and lending. Accrual uses block heights. Annualized rates therefore do not define an exact calendar payment schedule.

Interest settlement first uses the owner’s stable reserve and can collect the remainder from margin collateral. Settled assets are allocated between lenders and configured protocol recipients. A staking reward fraction splits the protocol portion; it is not a second independent deduction from the lender portion.

The staking-designated recipient is configured in the margin contract. See Revenue and allocations for recipient settings and the separate staking-funding process.

Other costs

Keep transaction gas, liquidation fees and bid discounts separate from ordinary borrowing interest. The wallet transaction and market configuration show the costs applicable to the action.