Interest Rate Model 3

Interest Rate Model 3 governs wBTC, plvGLP, DAI and FRAX.

Blue Chips

Interest rate model three encompasses a group of blue chip crypto assets; wBTC, plvGLP, DAI and FRAX. Lodestar recognizes all of the above assets as prime collateral, but associates them with a moderately risk adjusted interest rate, compared to the previous two models, to account for smart contract and custodial risks.


The supplier can earn a nice yield on these assets while providing prime collateral.


Borrowers in this model will pay a higher rate but many of the assets found in this model are usable for Arbitrum ecosystem farming. It is possible to borrow many of these assets to high level of utilizations while still profitably farming.

For example:

  • wBTC can deposited into tricrypto on Curve for emissions and trading fees.

  • plvGLP can be deposited into Plutus DAO for PLS rewards.

  • DAI can be deposited into GMX for glp and looped for more plvGLP.

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