Interest Rate Model
Last updated
Last updated
Moar Market uses a utilization-based interest rate model to dynamically determine borrowing costs and lending yields. This model ensures:
💡 Low borrowing cost when liquidity is abundant
📈 Rising interest rates as utilization increases
🔐 Strong yield incentives for lenders when liquidity is tight
Moar's model is defined by a curve made up of multiple linear segments separated by kink points. Each kink marks a change in slope — the rate at which borrowing cost increases with utilisation.
Example (3-segment curve with 2 kinks):
0
3.5
Base rate
75
18.0
📌 Kink 1 – moderate slope
90
32.0
📌 Kink 2 – steep slope
100
50.0
Max rate at full utilisation
📘 These numbers are examples and can be updated by governance.
The more the pool is utilised, the higher the borrow APR — encouraging borrowers to repay and attracting more lenders.
This chart visualizes the borrow APR across the full 0–100% utilisation range, showing how lender returns increase with utilisation.
Lenders earn a share of interest paid by borrowers. The actual supply APR depends on:
Current utilisation
The borrow APR (from the curve)
The protocol’s fee_on_interest setting
Where:
borrowAPR comes from the current point on the curve
utilisation = borrowed / supplied
fee_on_interest is the protocol’s share of interest (e.g. 10%)
If:
utilisation = 85%
borrowAPR = 27.33%
fee_on_interest = 10%
Then:
Borrow APR is based on a kinked utilisation curve
Supply APR depends on utilisation and protocol fee
All rates adjust automatically every block
Lenders earn more when pools are heavily borrowed
Moar’s design creates natural feedback loops between borrowing cost, pool usage, and lender rewards — keeping the system efficient and fair.
