# Supply & Borrow APY

last updated on: Mar 28 2022

## What is APY?

APY is Initialism of annual percentage yield. It intends the total amount of interest over one year. The annual percentage yield is expressed as an annualized rate. The adjustment of APY is based on the utilization rate of the asset.

## What is Utilization Rate?

The Utilization Rate is how much of the asset has been utilized and is calculated as:
$Utilization Rate = Borrowing/(Supplying-Reserves)×100$

## USDT, BUSD, USDC(Stable coin1)

### Borrow APY

When the utilization rate is less than 90% , the annuaized interest rate is calculated as:
$Borrow APY= 1.9+ 15 × Utilization Rate$
When the utilization rate is greater than or equal to 90% , the annualized interest rate is calculated as:
$Borrow APY = - 746 + 846 × Utilization Rate$

### Supply APY

$SupplyAPY= Borrow APY×Utilization Rate × 0.85$

## VAI(Stable Coin 2 )

### Borrow APY

When the utilization rate is less than 80% , the annuaized interest rate is calculated as:
$Borrow APY= 1.9+ 15 × Utilization Rate$
When the utilization rate is greater than or equal to 80% , the annualized interest rate is calculated as:
$Borrow APY =-330.5+430.5×Utilization Rate$

### Supply APY

$SupplyAPY= Borrow APY×Utilization Rate × 0.85$

## BTC, ETH, WBNB

### Borrow APY

When the utilization rate is less than 60% , the annuaized interest rate is calculated as:
$Borrow APY= 2+ 10.5× Utilization Rate$
When the utilization rate is greater than or equal to 60% , the annualized interest rate is calculated as:
$BorrowAPY = - 54.25 + 104.25 ×Utilization Rate$

### Supply APY

$SupplyAPY= Borrow APY×Utilization Rate × 0.8$

## ZIL, BABY, WING, ONT, ONG

### Borrow APY

When the utilization rate is less than 60% , the annuaized interest rate is calculated as:
$Borrow APY= 2 + 10.5×Utilization Rate$
When the utilization rate is greater than or equal to 60% , the annualized interest rate is calculated as:
$BorrowAPY = - 54.25 + 104.25 ×Utilization Rate$

### Supply APY

$SupplyAPY= Borrow APY×Utilization Rate × 0.75$

## Collateral ratio

Asset
Max Collateral ratio
USDT
80%
USDC
80%
BUSD
80%
VAI
70%
BTC
60%
ETH
60%
WBNB
60%
ZIL
35%
BABY
25%
WING
35%
ONT
50%
ONG
45%
The collateral ratio is depended on the token activity, and can be adjusted through voting.