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Interest Model
SiennaLend Interest Model
SiennaLend uses a variable interest model.
Interest rates are dynamic and are calculated based on the utilization of a given market (how much of the supplied liquidity is available vs. borrowed). SiennaLend's interest model follows Compound Protocol's Jump Rate model.
Through Market contracts, accounts can supply capital (SNIP-20 tokens) to receive sl-Tokens or borrow assets from the protocol (while holding a collateral). The market contract tracks the balances and algorithmically sets interest rates.
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