Lending Pool

Utilization Rate

Refers to the proportion of funds used in each pool. The utilization rate determines the APR of lenders and APR of borrowers.

Utilization Rate = Total Borrow/Total Supply

Lending APR

Lending APR is the Lending interest rate, which is a floating rate based on the utilization of the pool.Check the triple-slope interest model here:

Lending interest is compounded every second and the Lending APY accrues and auto compounds in your gTokens and collateral. When withdrawing, you will see their value has grown above the base token.

Lending APR = Lending Interest Rate * Utilization Rate * 80%

Vault Farm APR

Vault Farm APR is earned in BAGEL by depositing your gTokens on the Vault page.

Vault Farm APR = BAGEL yearly output * BAGEL price / TVL of pool

Total APR

Total APR = Lending APR + Vault Farm APR

Compounding APY

Compound interest income based on Total APR