Interest Rate Model

Hana Finance has implemented a variable interest rate strategy, which is common among other DeFi Money Market platforms like Compound and Aave.

This approach bases interest rates on the supply and demand dynamics of assets, as indicated by the Utilization rate. The calculation of interest rates is split into two phases: the Standard model and the Jump (Kink) model, to further influence lending and borrowing activities.

Parameter Setup

The initial parameters will be established by the Hana Finance team, taking into account Hana Finance's competitive stance relative to other lending platforms in the market. These lending parameters will become subject to community voting once Hana Finance's governance framework is set up.

Market Parameters