Interest Rate Model

Currently, Arkis Pools use a Fixed Interest Rate Model for all of the pools within the platform where the interest rate is different across pools and is a function of:

  1. Asset.

  2. Current supply/demand dynamics.

  3. Pool risk (whitelisted assets and protocols, maximum LTV).

However, within Arkis, the Lenderer/Borrower can cater to exotic interest rate models for OTC (Over-the-Counter) transactions.

Our dedicated research team is actively exploring various methodologies to further refine the detection of optimal interest rates.

Arkis Lending / Borrowing Order Book

Arkis team collects current bids from Asset Managers with the amount they are willing to borrow as a function of:

  1. Token (stable/ETH/BTC).

  2. Interest rate (lower interest rate -> bigger the amount).

  3. Collateral, LTV.

On the other hand, we also collect offers from Lenders where they can provide amounts they are willing to lend out as a function of:

  • Token (stable/ETH/BTC).

  • Interest rate (lower interest rate -> bigger the amount).

  • Collateral, LTV.

  • Term (open/closed term).

  • Duration.

By constructing Order Book and showing it to both sides, Arkis aims to find a better market equilibrium between Lenders and Borrowers.

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