the borrow interest rates increase slowly with utilisation
the borrow interest rates increase sharply with utilisation to above 50% APY if the liquidity is fully utilised.
The borrow interest rates paid are distributed as yield for vToken holders who have deposited in the protocol, excluding a share of yields sent to the ecosystem reserve defined by the reserve factor. This interest rate is paid on the capital that is lent out then shared among all the liquidity providers. The deposit APY,
, the utilisation ratio
, the borrow interest rate
, the reserve factor
The reserve factor allocates a share of the protocol's interests to a collector contract as reserve for the ecosystem incentives.