# Interest Rates

We use a 2-stage interest rate model, where computation of the interest rate is separated into two stages.

Before utilization reaches the kink level, interest rate is computed as:

After utilization goes above the kink level, interest rate is computed as:

The functions above produce the following graph:

Two-Stage Interest Rate Model

The parameters each token are listed:

Token | Kink | R_basic | R1 | R2 |

USDC | 85% | 0 | 0.117647 | 4.666667 |

USDT | 80% | 0 | 0.125 | 3.5 |

BTC | 75% | 0 | 0.266667 | 3.2 |

ETH | 75% | 0 | 0.266667 | 3.2 |

SOL | 70% | 0 | 0.285714 | 4.333333 |

RAY | 85% | 0 | 0.352941 | 11.333333 |

SRM | 80% | 0 | 0.15 | 6.9 |

weWETH | 75% | 0 | 0.266667 | 3.2 |

wbWBNB | 70% | 0 | 0.266667 | 3.2 |

mSOL | 75% | 0 | 0.266667 | 5.2 |

ORCA | 80% | 0 | 0.15 | 6.9 |

No borrow fee is charged when using Soda Protocol and the flash loan fee for all tokens is 0.3%.

Last modified 5mo ago