Interest Rate Model

Bodh Finance Interest Rate Model

BODH currently uses the Jump Rate Model, which is more efficient at incentivizing liquidity at a higher utilization rate.

The interest for Stablecoin & Other (Bluechip) tokens are different in Bodh:

Token	Interest Rate Type	Blocks per year	Base Rate Per Year	Multiplier Per Year	Kink	Jump Multiplier Per Year
ETH	Bluechip	1051200	0	25%	50%	100%
WBTC	Bluechip	1051200	0	25%	50%	100%
USDC	Stablecoin	1051200	0	20%	50%	100%
USDT	Stablecoin	1051200	0	20%	50%	100%
BOBA	Bluechip	1051200	0	25%	50%	100%
DAI	Stablecoin	1051200	0	20%	50%	100%
FRAX	Stablecoin	1051200	0	20%	50%	100%

All interest rates in BODH are determined as a function of a metric known as the utilization rate. The interest rates on BODH are determined by the utilization rate, which is essentially the percentage of total assets borrowed out against the total asset supplied. A high utilization rate indicates that a lot of borrowing has occurred, while a low ratio indicates the opposite. Utilization = Total Borrow / Total Supply

BODH's interest rate models dynamically adjust the interest rates of each asset market depending on the utilization rate. A high ratio would incur higher interest payments from borrowers, and consequently higher interest payments to suppliers, thereby encouraging suppliers to add more assets to the protocol and ensuring healthy levels of available liquidity.