Interest Rate Model 2

Interest Rate Model 2 governs Ethereum only.


Ethereum, being the native layer 1 token, is uniquely different from any other asset on-chain. As such, Lodestar has a specifically tailored model to incentivize users to chose to use prime collateral options such as ETH in the protocol.


Ethereum suppliers will also enjoy a higher rate of return over the utilization curve compared to other leading DeFi protocols, as well as the ability to borrow more against their collateral, with a collateral factor of 80%.


Borrowers will pay a marginally higher rate on this capital because of the risks Ethereum depositors take due to being exposed to riskier assets.

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