OrdiLend Docs
  • Introduction
  • Participate Testnet
  • Tokenomics
  • Roadmap
  • 🌉Bridge
    • Overview
    • Technical Implementation
    • Advantages
    • Process
  • 🏦Lending Protocol
    • Overview
    • Interests
    • Borrower Interest Rate
    • Supplier Interest Rate
    • Liquidation
    • Parameters
    • APR
  • Terms of Service Agreement
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  1. Lending Protocol

Supplier Interest Rate

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Last updated 1 year ago

On the other side, the Supplier Interest Rate in OrdiLend denotes the earnings for liquidity providers. It's computed through a formula that incorporates "R", the prevailing interest rate, and "U", the Utilization Rate, mirroring the current lending dynamics and demand within OrdiLend.

Supply Interest Rate=(Rt×Ut)×Reserve Factor\rm Supply~Interest~Rate = (\it R_t\times U_t) \times Reserve~FactorSupply Interest Rate=(Rt​×Ut​)×Reserve Factor

*Note: The Reserve Factor is a critical component that delineates the fraction of the interest generated from borrower payments that is allocated to the OrdiLend protocol itself.

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