# Interest Rate Curves

## Definitions

**Base**

**Base**

The base interest rate in a lending and borrowing protocol. It's the minimum interest rate that borrowers pay and lenders receive.

**Effect on IR Curves:**In an interest rate curve, the Base is the starting point. As demand for borrowing increases or decreases, the actual interest rate moves away from this base rate according to preset rules or algorithms.

**Kink**

**Kink**

The point at which the interest rate model changes slope.

**Effect on IR Curves:**At the kink, the behavior of the interest rate curve changes. Below this point, the platform aims to encourage borrowing with lower rates. Above this point, the rate increases more steeply to discourage additional borrowing and to encourage repayment.

**Multiplier**

**Multiplier**

The multiplier in interest rate models is a factor that determines how steeply the interest rate increases with utilization rate.

**Effect on IR Curves:**The multiplier affects the slope of the interest rate curve. A higher multiplier means that interest rates increase more rapidly as the utilization rate approaches and surpasses the kink.

**Jump Multiplier **

**Jump Multiplier**

The jump multiplier is an additional factor that comes into play when the utilization rate surpasses the kink.

**Effect on IR Curves:**This multiplier causes a significant jump in interest rates beyond the kink point, creating a steep increase in rates to prevent liquidity shortages and manage risk.

## Moonwell IR Curve Parameters

## Base

Asset | Base | Kink | Multiplier | Jump Multiplier |
---|---|---|---|---|

DAI | 0 | 0.8 | 0.05 | 2.5 |

USDC | 0 | 0.9 | 0.067 | 9.0 |

USDbC | 0 | 0.7 | 0.057 | 5.7 |

WETH | 0.01 | 0.75 | 0.04 | 3.8 |

cbETH | 0.01 | 0.45 | 0.05 | 3 |

wstETH | 0.01 | 0.45 | 0.2 | 3 |

rETH | 0.01 | 0.45 | 0.2 | 3 |

## Moonbeam

Asset | Base | Kink | Multiplier | Jump Multiplier |
---|---|---|---|---|

GLMR | 0.02 | 0.6 | 0.15 | 3 |

xcDOT | 0.02 | 0.6 | 0.15 | 3 |

xcUSDT | 0 | 0.8 | 0.0563 | 4 |

xcUSDC | 0 | 0.8 | 0.0875 | 7.4 |

FRAX | 0 | 0.8 | 0.01 | 0.01 |

WETH.wh | 0.02 | 0.6 | 0.0625 | 3 |

WBTC.wh | 0.02 | 0.6 | 0.15 | 3 |

USDC.wh | 0 | 0.8 | 0.0875 | 7.4 |

## Moonriver

Asset | Base | Kink | Multiplier | Jump Multiplier |
---|---|---|---|---|

MOVR | 0.02 | 0.6 | 0.15 | 3 |

xcKSM | 0.02 | 0.6 | 0.15 | 3 |

FRAX | 0 | 0.8 | 0.0875 | 7.4 |

WETH.multi | 0.02 | 0.6 | 0.15 | 3 |

WBTC.multi | 0.02 | 0.6 | 0.15 | 3 |

USDC.multi | 0 | 0.8 | 0.05 | 3.175 |

USDT.multi | 0 | 0.8 | 0.05 | 3.175 |

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