Hi, some important question regarding XUSD rates:
Available1,043,650.86
Borrowed989,952.42
Lend APY: ## 11.04%
Borrow APY:## 13.30%
As I see it there are currently about 2.03m XUSD lended at 11,04% while only 989k are borrowed at 13.3%. How is this possible? The lenders will receive around 220K p.a. while the borrowers only pay around 130K. What am I missing?
First off welcome whale!
Secondly, maybe you can speak to NOTIK in the Sovryn discord?
The displayed borrow rate is the rate that is being offered currently. It is not the average rate that is being paid by current loans. Your logic would apply to the average rate but not to the new rate being offered.
And if someone takes out a large loan, the borrow rate applied to that loan will adjust upward to cover the new utilization rate created by the borrow.
Hope that helps.