Supplying
When users supply assets on Hana Finance, they receive an ongoing interest rate, much like real world loans. This interest is automatically added to their deposited collateral.
The platform's interest rate for each asset is a function of the utilisation rate of the asset
Interest Rate Model (Lenders)
Parameters
| Parameter | Definition |
|---|---|
Ut | Current utilisation rate of asset |
ReserveFactor | Reserve Factor of asset. Outlined in market parameters |
St | Current supply interest rate of asset |
What does this mean?
As Utilisation rate increases, the interest that lenders receive increase as well
A portion of the interest is attributed back to the Hana Finance treasury to fund the Insurance Fund and Operational costs, as indicated by ReserveFactor
This is done to ensure Hana Finance remains a sustainable liquidity platform for all users
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