Interest Rate Adjustments
Nebula uses an algorithmic interest rate model to ensure balance in liquidity pools:
Low Utilization
When the utilization ratio is low (e.g., <50%), interest rates decrease to attract more borrowing.
High Utilization
When the utilization ratio is high (e.g., >90%), interest rates increase to incentivize liquidity providers to deposit more assets.
Optimal Utilization Range
The target utilization range (e.g., 60%-80%) is predefined for each pool.
Rates are calibrated to maintain this range, ensuring efficient liquidity utilization.
Last updated