Dynamic Interest

Yama has implemented dynamic interest rates for borrowers based on current PSM utilization. Interest is calculated as a linear piecewise function. Note that there is a minimum and maximum interest rate, which are set to 0% and 60% respectively as of June 17, 2023. Do note that interest is updated by InterestCollateralManager.setInterestRates(), which is triggered when collateral is added/removed (including leverage actions). It is not necessarily triggered when users lend/withdraw or swap without using the PSM, so the interest may deviate from the expected value.

$$i(x) = \left\{ \begin{array}{lr} \frac{x(i_b-i_a)}{utilA} + i_a, & i<utilA\\ \\ \frac{i_c-i_b}{utilB-utilA}(x-utilA) + i_b, & utilA \leq i<utilB\\ \\ \frac{i_d-i_c}{100-utilB}(x-utilB) + i_c, & i \geq utilB \end{array} \right\}$$

Collateral	utilA	utilB	interestRateA	interestRateB	interestRateC	interestRateD
MooGLP	0.85	0.90	1.00	1.08	1.15	1.80
ARB	0.85	0.90	1.00	1.08	1.15	1.80
YPlvGLP	0.85	0.90	1.00	1.13	1.25	1.80
jGLP	0.85	0.90	1.00	1.15	1.25	1.80
YsnrLLP	0.85	0.90	1.00	1.15	1.25	1.80

Rates vary depending on collateral type.

PSM Utilization (%)	MooGLP Interest (%)	ARB Interest (%)	YPlvGLP Interest (%)	jGLP Interest (%)	YSnrLLP Interest (%)
0 - 85	0 - 8	0 - 8	0 - 13	0 - 15	0 - 15
85 - 90	8 - 15	8 - 15	13 - 25	15 - 25	15 - 25
90 - 100	15 - 80	15 - 80	25 - 80	25 - 80	25 - 80