How is Borrow APR for a currency calculated?

Borrow APR for a currency = algorithmic based on reserve utilization. The following graph roughly resembles Nuo's dynamic Borrow APR

Reserve Utilization for a given currency= funds loaned out currently/ funds deposited in reserves for the currency

At any given time, if x-axis gives us the Reserve Utilization for a particular currency then y-axis gives us the borrow APR for that currency.

Did this help answer your question?

thumbs up
thumbs down

Thanks for the feedback! 🙏🏽

Help by drift