Dynamic Interest Rates on Curvance 💾 Curvance’s lending markets feature real-time, demand-based interest rates designed to keep liquidity healthy and markets efficient 🏦 🔄 Inspired by a few current frameworks that exist today in DeFi, but built entirely from scratch, Curvance’s rate model reacts dynamically to how much liquidity is being used within each pool. Here’s how it works 👇 - Pool Utilization: As more of a pool’s liquidity is borrowed, rates rise to reflect demand. Low utilization = lower rates. High utilization = higher rates. - Vertex Point: Once utilization passes a set threshold (e.g. 85%), rates begin to accelerate sharply, encouraging new liquidity to flow in and discouraging excessive borrowing. - Time Decay: If demand cools off, rates automatically adjust downward every few hours, ensuring stability without manual intervention. Quick example of this: A USDC lending pool starts at 80% utilization with a 2% rate. If large borrowers push utilization to 100%, rates quickly jump to 8% and continue to climb over time until liquidity rebalances. This dynamic mechanism: - Keeps pools balanced between lenders and borrowers - Encourages efficiency and market-driven stability - Rewards real participation, not idle capital The result is a self-regulating and adaptive money market that evolves dynamically with market demand. Stay Floppy.