Lending APR

inToken holders receive continuous earnings depending on market conditions based on:

1. Lending pool utilization: Higher utilization means liquidity in the pool is more scarce, which leads to higher APR

2. Borrowing interest: Lenders share the interests paid by the borrowers corresponding to the borrowing rate and the utilization

The lending APR is derived as:

Lending APR = Utilization Rate * borrow_interest_func(utilization) * (1 - reserve_factor)

• where the borrow_interest_func is the double-slope interest rate model and reserve_factor is the protocol fee

• Each asset has its own market supply and demand with its own lending APR that constantly evolves.