The Efficiency protocol calculates interest rates through what's known as 'Utilization Rate'. UR is the percentage of total assets borrowed against the total asset supplied. A high utilization rate means a lot of users have borrowed, while a low ratio equals the opposite.

#EfficiencyDAO's protocol's model dynamically adjusts the interest rates of each asset depending on the utilization rate.📈 A high ratio will incur higher interest payments from borrowers to suppliers, thereby encouraging suppliers to deposit more assets to the protocol! 🪙

#EfficiencyDAO's protocol also currently uses the 'Jump Rate Model'.🪙 This model is more efficient at incentivizing liquidity at a higher utilization rate! 📈

Merry Christmas!🎄 May the Christmas season bring everyone happiness, success and joy!🔔

Here is an interesting thread from DG on his thoughts about the future of #DeFi in 2023! 📈 What do you think? 👀

#EfficiencyDAO presents Euler: a permissionless lending protocol custom-built to help users lend and borrow more Ethereum-based tokens than ever before. Euler works at a high level & has new features & innovations that help to set it apart from other popular lending protocols.

How to borrow on #EfficiencyDAO? 1. Go to the "Borrow" page. 2. Select the asset you want to borrow. 3. Ensure that you have deposited enough collateral. 4. Enter the amount you want to borrow.