Interest Rates
How PredMart interest rates work — the kinked utilization model, supply APY vs borrow APR, the reserve factor, and rate behavior at different utilization levels.
<p>PredMart uses a kinked (two-slope) interest rate model. Below 80% utilization, rates increase gently from 5% to 25% APR. Above 80%, rates increase steeply up to 300% APR, creating strong incentives to restore available liquidity. Lenders earn supply APY derived from the borrow rate, utilization, and a 5% reserve factor.</p>