DeFiner Protocol
HODLerSavingsSwap
v2 HODLer Market
v2 HODLer Market
  • Introduction
  • FAQs
    • Lending Pool Creation
    • About Oracle
    • About Maturity Date
    • Loan APR Range
    • Mining Rewards Mechanism
    • Distribution of Rewards
  • Protocol Revenue
  • Risks Control Parameters
  • Liquidation
  • Configurations
  • DeFiner HODLer SDK
  • Use Cases
Powered by GitBook
On this page
  • What is Loan APR Range?
  • How is the APR calculated?
  • Definition
  1. FAQs

Loan APR Range

PreviousAbout Maturity DateNextMining Rewards Mechanism

Last updated 2 years ago

What is Loan APR Range?

The loan APR range is for creators to choose the annual percentage return rate range for deposits and loans. The curve is a piecewise function curve. The minimum APR a creator can choose is 3% and the maximum is 300%

  • Deposit APR (Annual Percentage Rate) is the annual rate of return earned on a deposit, without taking into account the effect of compounding interest.

  • Borrow APR (Annual Percentage Rate) is the annual rate of interest paid on borrow funds, without taking into account the effect of compounding interest.

How is the APR calculated?

The loan APR range can be adjusted by two parameters: RateCurveConstant and maximum utilization rate.

  • Borrow APR = RateCurveConstant÷(1−u), when utilization rate is larger than maximum utilization rate(umax)

  • Deposit APR= Borrow APR * Utilization

Definition

Loan APR Range: The Loan APR Range allows HODLer Market creators to choose the APR rate for deposits and loans of the base token.

Borrow APR = RateCurveConstant÷(1−umax), learn more details here:

https://docs.definer.org/interest-model