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Introduction
While we eventually plan to move to a reactive interest rate model that will optimise for utilisation, we start off with a standard kink model. The parameters of our kink model are:
  1. 1.
    Base IR (APY when utilisation is 0%)
  2. 2.
    Kink IR (APY when utilisation is exactly Kink%)
  3. 3.
    Max IR (APY when utilisation is 100%)
  4. 4.
    Kink% (Percent utilisation where kink occurs)
The main consideration is maintaining target utilisation (typically at Kink%).
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