Yeti Finance
  • Introduction
  • Disclaimer: Risks & YETI/YUSD
  • Terms of Service
  • Yeti.Finance
  • Using Yeti Finance
    • Borrowing
      • Setting up Metamask
      • Opening a Trove
      • Managing Your Trove
      • Variable Deposit Fees
      • Interest
      • GLP Trove Deposit
    • Yeti Calculator
    • The Dashboard
  • YETI and YUSD
    • Protocol Mechanisms
  • Other
    • Protocol Integrations
    • Definitions
    • FAQ
    • Protocol Security
    • Contract Addresses
    • Bug Bounty Program
    • Using Yeti Finance Testnet
  • Links
    • Technical Docs
    • Discord
    • Twitter
    • Telegram
    • Website
    • Testnet Link
    • Brand Assets
Powered by GitBook
On this page
  1. Using Yeti Finance
  2. Borrowing

Interest

Please review all protocol documentation and our DISCLAIMERS: RISK OF USING PROTOCOL page before using the Yeti Finance protocol and/or interacting with YETI or the YUSD token.

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.

PreviousVariable Deposit FeesNextGLP Trove Deposit

Last updated 2 years ago