Interest Rates
There are two different interest rates in the leNFT protocol. The borrow rate and the supply rate.
Borrow rate
A reserve's borrow rate (BR) is a function of a its utilization rate (UR). It is designed to keep the reserve's UR around the optimum utilization rate of 70%. Loans are fixed-rate and use the borrow rate of the reserve at the moment of creation.
Supply Rate
The supply rate is the annual rate at which the deposited assets in a reserve are increasing in value. It depends on the UR of the reserve and the borrow rate of the loans created using it.
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