Clearpool
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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.
The higher the utilization rate, the higher the interest rate and vice versa. 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).
For more technical detail on interest rates, please see the IRM Technical Paper below.
IRM Technical Paper.pdf
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Last modified 3mo ago
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