🤖LASA AI
LASA (Lending Automated Scaling Algorithm) is our on-chain mechanism that dynamically determines the borrow APY (Annual Percentage Yield) in our lending pools. It's designed to adjust interest rates based on market conditions, primarily the utilization rate of assets within a pool.
How LASA Works
LASA aims to maintain an optimal balance between rewarding lenders and providing competitive rates for borrowers. It achieves this by implementing an interest rate model that responds to supply and demand.
Utilization Rate: This is a key metric LASA uses. It's the ratio of borrowed assets to the total supplied assets in a pool.
A low utilization rate might suggest low demand for borrowing or an oversupply of assets, leading LASA to potentially lower borrow APYs to incentivize borrowing.
A high utilization rate indicates high demand or low supply, prompting LASA to increase borrow APYs to attract more liquidity and make borrowing more expensive.
Interest Rate Curves: LASA uses a model with configurable parameters to define an interest rate curve for each asset. This curve dictates how the borrow APY changes as the utilization rate changes. Typically, the curve will have a gentler slope at lower utilization rates and a steeper slope as utilization approaches high levels (e.g., 80-90%), to aggressively incentivize repayment or new deposits and prevent liquidity crunches.
LASA Parameters for Pool Interest Rate Curves
The following table provides lookup values for different borrow rate curves. These parameters are used to construct specific interest rate models tailored to different assets or market conditions. The goal is to achieve a target interest rate at a specific utilization percentage (referred to as 'Gaue Value' or 'Gauge Value' in some contexts, indicating a target calibration point for the curve).
1000000000000000000
3000000000000000000
4000000000000000
(90%, 3%)
1000000000000000000
3000000000000000000
5000000000000000
(90%, 4%)
1000000000000000000
3000000000000000000
6000000000000000
(90%, 5%)
1000000000000000000
3000000000000000000
6500000000000000
(90%, 5.5%)
1000000000000000000
3000000000000000000
7000000000000000
(90%, 6%)
1000000000000000000
3000000000000000000
8000000000000000
(90%, 7%)
1000000000000000000
3000000000000000000
10000000000000000
(90%, 8%)
1000000000000000000
3000000000000000000
13000000000000000
(90%, 11%)
1000000000000000000
3000000000000000000
14500000000000000
(90%, 12%)
1000000000000000000
3000000000000000000
18000000000000000
(90%, 14%)
1000000000000000000
3000000000000000000
19000000000000000
(90%, 15%)
1000000000000000000
3000000000000000000
22000000000000000
(90%, 17%)
1000000000000000000
3000000000000000000
25000000000000000
(90%, 20%)
1000000000000000000
3000000000000000000
30000000000000000
(90%, 24%)
1000000000000000000
3000000000000000000
35000000000000000
(90%, 28%)
1000000000000000000
3000000000000000000
40000000000000000
(90%, 32%)
1000000000000000000
3000000000000000000
45000000000000000
(90%, 36%)
1000000000000000000
3000000000000000000
50000000000000000
(90%, 40%)
1000000000000000000
3000000000000000000
8000000000000000
(80%, 3%)
1000000000000000000
3000000000000000000
10000000000000000
(80%, 4%)
1000000000000000000
3000000000000000000
17500000000000000
(80%, 7%)
1000000000000000000
3000000000000000000
22000000000000000
(80%, 8%)
1000000000000000000
3000000000000000000
224000000000000000
(80%, 9%)
1000000000000000000
3000000000000000000
27000000000000000
(80%, 10%)
1000000000000000000
3000000000000000000
29000000000000000
(80%, 11%)
1000000000000000000
3000000000000000000
50000000000000000
(80%, 17%)
Parameters Explained:
Lower Bound Rate [wei]: The minimum interest rate a pool can have, even at zero utilization. Represented in wei (1 ETH = 1E18 wei).
Upper Bound Rate [wei]: The maximum interest rate a pool can target, typically at very high utilization levels. Represented in wei.
Mul-Factor [wei]: A multiplier that influences the steepness of the interest rate curve, particularly how quickly the rate increases as utilization rises towards the target point (e.g., 90% or 80% utilization).
Target (Utilization %, Rate %): This column indicates the desired borrow APY at a specific pool utilization percentage. For example, a target of (90%, 5%) means the parameters in that row are chosen to achieve a 5% borrow APY when the pool's utilization reaches 90%.
By adjusting these parameters, different risk/reward profiles can be established for various lending pools, reflecting the specific characteristics and market dynamics of the underlying assets.
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