Interest Rates

On Clearpool, interest rates are driven by the market forces of supply and demand. Pool interest rates are dynamic, they follow a curve and fluctuate depending on the proportion of pool liquidity being utilized by the borrower at any given time – the utilization rate.

Pool interest is accrued on every block and automatically added to the balance of liquidity owed by the borrower. All else equal, this increases the borrower’s utilization rate.

The amount and frequency of each repayment is of the borrower’s choosing, so long as the utilization rate stays below a predetermined level set by governance (see Default for more information).

Clearpool has introduced the CPOOL staking system, whereby a number of contributors (aka Oracles) are tasked with providing the parameters that shape the interest rate curve.

For more technical detail on interest rates, please see the IRM Technical Papers below.

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