.png%3Falt%3Dmedia%26token%3Da0556b11-3c90-41c6-9eb8-5d6cc12a31ec)
.png%3Falt%3Dmedia%26token%3Da0556b11-3c90-41c6-9eb8-5d6cc12a31ec)
Interest Rate Model
Sumer Protocol has adapted a variable interest rate model, popular with other DeFi Money Market protocols in the market (such as Compound and Aave), where the rates are largely determined by the supply and demand of assets, represented by its Utilization rate.
Furthermore, the computation of interest rates is separated into two stages, the Standard model and the Jump (Kink) model, to further incentivize/disincentivize depositing and borrowing activity.