Yeti Finance Technical Docs
  • Introduction
  • Terms of Service
  • Disclaimer: Risks & YETI/YUSD
  • How Does Yeti Finance Work?
    • General
    • Borrowing
      • Stablecoin Borrowing
      • Borrowing FAQ
    • Yield Bearing Collateral
    • Redemptions and YUSD Peg
    • Recovery Mode
    • Definitions
    • Stability Pool and Liquidations
    • Interest
  • YETI and YUSD
    • Token Overview
  • About Yeti Finance
    • Protocol Security
    • Contract Addresses
    • Bug Bounty Program
    • Collateral Integration Process
    • Integrations
    • Contract Interaction Through Snowtrace
      • Trove Operations
      • Stability Pool
      • Liquidation
      • Redemption
  • Links
    • Discord
    • Twitter
    • Telegram
    • Website
Powered by GitBook
On this page
  1. How Does Yeti Finance Work?

Interest

Please review Disclaimer: Risk of Using Protocol and Terms of Service before using the Yeti Finance and/or interacting with YETI or YUSD. Yeti Finance & YETI/YUSD are not available in the U.S.

How are interest rates calculated for each trove?

Interest rates differ per collateral, and a user's interest rate depends on their collateral makeup. Imagine collateral 1 comprises 25% of a user's trove, and collateral 2 comprises 75%. C1 has an interest rate of 1%, and C2 has an interest rate of 2%. The user's composite interest rate would be: 25% * 1% + 75% * 2% = 1.75%. So, their debt would be charged 1.75% per day, until they adjust their trove and their ratios can change.

When is interest applied?

Interest rates are applied once per day autonomously. This means that once one day has passed, the next action in the protocol will apply interest, for everyone.

There is also an external function which anyone can call to tick the interest, once a day has passed.

PreviousStability Pool and LiquidationsNextToken Overview

Last updated 2 years ago