LogoLogo
  • 🦖Trading Evolution Starts Here
  • 🍖How to...
    • Hatch a Rex (Open Position)
    • Release a Rex (Close Position)
    • Keep Your Rex Healthy
    • Feed Rex (Add Margin)
    • Become a Jungle Patron
  • 🌴More About the Jungle
    • Fees
    • Dynamic Lending Rates
    • Rex Extinction (About Liquidation)
    • Smart Contract Addresses
    • Audit Report
    • Brand Kit
  • 🍵Community & Feedback
  • 🪙Campaigns
    • 🐲2025 First Roar Trading Campaign
    • 🌊2025 Waterhole Surge Reward Program
    • 🏆Pre-Launch Trading Showdown
  • 🗺️Roadmap
Powered by GitBook
On this page
  1. More About the Jungle

Dynamic Lending Rates

Last updated 1 month ago

At Tea-REX, we have a dynamic lending rate model that evolves like the natural environment, providing optimal capital efficiency and market stability.

Model

The lending rate model is represented by two primary curves:

  1. Borrow Rate Curve (Blue) - The borrow rate paid by Rex Wranglers (Traders) → The rate paid by borrowers increases as more liquidity is borrowed from the pool.

  2. Supply Rate Curve (Orange) - The APY earned by Jungle Patrons (Lenders) → The Lending APR earned by suppliers rises as borrowing increases.

As shown in the graph, these rates adjust dynamically based on the Utilization Rate of each Earn Pool.

Key Parameters:

  • Base Rate (1%): The minimum borrowing APR when the pool’s utilization is low.

  • Growth Rate (24%): The rate at which borrowing costs increase as utilization rises.

  • Reserve Ratio (10%): The portion of the pool kept in reserve for stability.

Example at 80% Utilization:

  • Borrowers pay around 20% APR.

  • Suppliers earn about 16% APR.

As the Utilization Rate increases, both borrowing costs and Lending APR rise, rewarding Jungle Patrons for their liquidity.

🌴