Interest rates model
How the borrow and the deposit interest rates are computed
Borrow Interest Rate
Deposit Interest Rate
ALGO Interest Rate
Considering the ALGO participation rewards obtained by holding the token in the wallet, the mathematics of interest and the deposit rates of the users that interact with the ALGO/fALGO pool are adjusted to take them into account.
The ALGO borrow interest rate is computed as follows:
For the same reason, the interest rate of the deposits has increased by the quote of rewards that the protocol pays to the user who deposited ALGOs in the liquidity pool.
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