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How To Deploy An Interest Rate Model

  1. Visit the EVK Vault Manager portal

EVK Vault Manager

The EVK Vault Manager portal provides easy ways to manage Euler Vault Kit contracts. Choose Deploy IRM section to deploy a new IRM.

  1. Fill all attributes

Deploy IRM

  • BaseIR: This is the interest rate applied when the utilization of the lending pool is zero. It represents the minimal interest charged to borrowers when there is little to no demand for borrowing.
  • KinkIR: This is the interest rate applied when the utilization rate reaches a specified point (the kink). At the kink, the interest rate changes more sharply to reflect higher demand for the borrowed assets.
  • MaxIR: This is the maximum interest rate that can be charged to borrowers. It represents a ceiling that the protocol will not exceed, even if demand for borrowing skyrockets and utilization is very high.
  • Kink: The kink represents the utilization threshold where the interest rate model changes. Below the kink, the interest rate increases gradually; above it, the interest rate increases much more sharply.
  • Interest Fee: This fee is a percentage of the interest paid by borrowers that is collected by the protocol.
  1. Sign the transaction

Sign the deploy transaction by clicking CREATE IRM button, and you are done.