Why Is My Interest Rate Not Fixed?

Note that Kashi 1.0 has been deprecated. Deposits and borrows have been disabled in the UI.

Kashi uses an elastic interest rate model that responds accordingly to supply and demand. The interest rate gets automatically adjusted, relative to the market utilization of the pool.

For example, if utilization is below 70%, the interest rate will drop to incentivize borrowing. If utilization is above 80%, the interest rate will increase to attract more liquidity providers and disincentivize borrowing.

The purpose of this is to incentivize liquidity within an ideal range so that funds aren’t over/under used.

Why Is My Interest Rate Not Fixed?

Learn why Kashi doesn't utilize fixed interest rates

Note that Kashi 1.0 has been deprecated. Deposits and borrows have been disabled in the UI.