Market and Account State

Market State Parameters

Exchange Rate

The exchange rate between a lToken and its underlying asset is perpetually increasing as interest is accrued in the market through borrowing activity. The exchange rate between the lToken and its underlying asset is equal to:

Cash

Cash is defined as the total amount of underlying assets owned by the lToken contract. The amount of cash in any supported market can be queried by the user.

Total Borrows

Total borrows is equal to the total amount of underlying assets currently loaned out in the market. Total borrows is the primary driver of the accrued interest paid to asset suppliers.

Borrow Rate

The current borrow rate per block is the amount multiple by your current borrow balance to return your interest accrued on a given block and can be queried by the user at any time.

Total Supply

The total supply is equal to the total amount of lTokens circulating in any given market and can be queried by the user at any time.

Supply Rate

The current supply rate per block is the amount multiple by your supply balance to return your interest gained on a given block and can be queried by the user at any time. The supply rate calculation is derived from the borrow rate, reserve factor, and total borrows. See the Interest Rate Model section for further details.

Total Reserves

The total reserves are a portion of historical accrued interest that is set aside in each market as cash that can be withdrawn or transferred by the. The Reserve Factor is unique to each market determines the amount of accrued borrow interest that is set aside.

Account State Parameters

Borrow Balance

Any user that borrows assets from the protocol is exposed to accumulating interest based on the current borrow rate. Interest is accrued every block and any user can use this function to read the current value of an account's borrow balance including interest.

Underlying Balance

A user's supplied assets in any given market are represented by their Underlying Balance. Underlying Balance is equal to a user's lToken balance multiplied by the current exchange rate. Written formulaically,

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