Interest rate

Platform borrow and deposit interest rate

• Borrow Interest = m × fund utilization rate + b

Rates table for tokens

Token	baseRate	80%	90%	100%
HT	10%	20%	25%	50%
BTC	10%	20%	25%	50%
ETH	10%	20%	25%	50%
HPT	10%	20%	25%	50%
HFIL	10%	20%	25%	50%
DOGE	10%	20%	25%	50%
USDT	13%	25%	30%	60%
HUSD	13%	25%	30%	60%
MDX	50%	80%	100%	150%
BXH	50%	80%	100%	150%

BACK Interest vs Utilization

• Deposit APR = (1 - interest retention ratio) × fund utilization rate × borrow interest rate

Take deposit pool 10,000,000 USDT as an example. The interest retention ratio is 10%. When the borrowed amount is 5,000,000, 8,000,000 and9,500,000 respectively, the borrow and deposit interest rate are showed as follows:

Fund utilization rate	Borrow Interest/annual borrow interest	Deposit APR/annual deposit interes
50% (lend5,000,000)	16.25% / 812,500	7.3125% / 731,250
80% (lend8,000,000)	20% / 1,600,000	14.4% / 1,440,000
95% (lend9,500,000)	55% / 5,225,000	47.025% / 4,702,500

Leveraged mining composite APY

Leveraged mining APY = Yield farm income (compound interest) × leverage ratio - (leverage ratio - 1) × Borrow Interest + (leverage ratio - 1) × Platform mining income

• Liquidity mining income = (platform token per block of liquidity mining pool × latform token price / total asset value of the pool) × 10512000

• Yield farm income (compound interest)=(1 + Liquidity mining income/365)^365 - 1

• Platform mining income = (BACK produced per block of liquidity mining pool × BACK current price / total loan value of the pool) × 10512000

• Borrow Interest = m × fund utilization rate + b

Note: BACK per block of liquidity mining pool = BACK per block × BACK pool reward weight × BACK borrower weight.

Note: 10512000 is the number of output of HECO chain every year.

Deposit composite APR

Deposit composite APR = deposit APR + platform deposit reward APR

• Deposit APR= (1 - interest retention ratio) × fund utilization rate × borrow interest rate

• Platform deposit reward APR = (BACK produced per block of deposit pool × BACK price / total value of deposit) × 10512000

Note: BACK per block of deposit pool = BACK per block × BACK pool reward weight × BACK depositor weight

Interest returns/payment rules:

APY stands for annual percentage yield. For instance, token M’s deposit APY is 100%. Then user A deposits 100 M. One year later, the total interest return will be 100 M and the return will be automatically added into the deposit.