Rebalancing
Last updated
Last updated
Although a user locks in a borrow interest rate when stable borrowing, under certain conditions, it may be necessary to rebalance their borrow interest rate. Rebalancing means that the userβs stable borrow interest rate is updated to the poolβs current stable interest rate
To rebalance the stable rate down, the userβs loan stable rate needs to be greater than the current stable rate plus a delta, for instance, β=20%.
β₯ *(1+β)
To rebalance the stable rate up, two conditions have to be met at the same time. The first requires the utilization ratio to be greater than or equal to a given threshold, for instance, %. The second requires the deposit interest rate to be less than or equal to a given percentage of the max variable interest rate, for instance, %.