> For the complete documentation index, see [llms.txt](https://bagelsofficial.gitbook.io/bagels-finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bagelsofficial.gitbook.io/bagels-finance/protocol-introduction/risks/interest-rate-model.md).

# Interest Rate Model

### Lending Rate：Fixed Rate+Floating Rate

The Lending Rate is determined by a triple-slope interest model. 

Combining fixed interest rate + floating interest rate can more effectively improve the utilization.

![](https://3320645607-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MfpcGX0cnuFkqZhjHn-%2Fuploads%2FxOJ5i7qZNLK4Oj1ZNAw5%2F%E5%9B%BE%E7%89%8750.png?alt=media\&token=85cec74d-3151-4915-bcef-73b4fb8b1f4c)

**USDT/BUSD/USDC Lending Rate：**

Utilization: 0 - 40%，Fixed Rate: 12.5%

Utilization: 40% - 80%，Interest rate rises from 12.5% to 18%

Utilization: 80% - 100%，Interest rate rises from18% to 40%

 

**ETH Lending Rate：**

Utilization: 0 - 50%，Fixed Rate: 7.5%

Utilization: 50% - 80%，Interest rate rises from 7.5% to 16%

Utilization: 80% - 100%，Interest rate rises from 16% to 39%

 

**BTC Lending Rate：**

Utilization: 0 - 50%，Fixed Rate: 6%

Utilization: 50% - 80%，Interest rate rises from 6% to 15%

Utilization: 80% - 100%，Interest rate rises from 15% to 38%

**MDX Lending Rate：**

Utilization: 0 - 50%，Fixed Rate: 30%

Utilization: 50% - 80%，Interest rate rises from 30% to 60%  

Utilization: 80% - 100%，Interest rate rises from 60% to 80%

**BNB/WBNB Lending Rate：**

Utilization: 0 - 50%，Fixed Rate: 15%

Utilization: 50% - 80%，Interest rate rises from 15% to 20%

Utilization: 80% - 100%，Interest rate rises from 20% to 50%

 

**CAKE Lending Rate：**

Utilization: 0 - 50%，Fixed Rate: 38%

Utilization: 50% - 80%，Interest rate rises from 38% to 70%  

Utilization: 80% - 100%，Interest rate rises from 70% to 90%

### Borrowing Rate

 Borrowing Rate = Lending Rate \* a, a = 1.3

 a = 1.3: 1 is the Lending Rate, 0.3 is the Platform's rate of return. Then the 0.15(0.3/2) of platform revenue will distribute to DAO, the remaining 0.15 will distribute to Bagels team for operation.