𝗥𝗘𝗦𝗘𝗥𝗩𝗘 𝗣𝗔𝗥𝗔𝗠𝗘𝗧𝗘𝗥𝗦 𝗛𝗘𝗟𝗣 𝗗𝗘𝗙𝗜𝗡𝗘 𝗪𝗛𝗘𝗥𝗘 𝗜𝗡𝗧𝗘𝗥𝗘𝗦𝗧 𝗙𝗟𝗢𝗪𝗦
Interest paid by borrowers and interest received by suppliers are related, but they are not necessarily identical.
In JustLend DAO V1, the reserve factor determines the portion of accrued borrowing interest allocated to protocol reserves under the relevant accounting rules.
This affects how lending income is distributed between suppliers and reserves.
Consider a hypothetical market generating 1,000 units of gross interest. If its reserve factor were 10%, the corresponding reserve allocation would be 100 units before other applicable accounting details.
That is an illustration of the mechanism, not a claim about a current JustLend DAO parameter.
The lesson is that lending economics depend on more than the borrow rate.
Researchers comparing supplier returns should understand utilization, rate calculations, and reserve allocation rather than assuming all borrower interest flows directly to suppliers.
@DeFi_JUST @justinsuntron
#TRONEcoStar🔥
Interest paid by borrowers and interest received by suppliers are related, but they are not necessarily identical.
In JustLend DAO V1, the reserve factor determines the portion of accrued borrowing interest allocated to protocol reserves under the relevant accounting rules.
This affects how lending income is distributed between suppliers and reserves.
Consider a hypothetical market generating 1,000 units of gross interest. If its reserve factor were 10%, the corresponding reserve allocation would be 100 units before other applicable accounting details.
That is an illustration of the mechanism, not a claim about a current JustLend DAO parameter.
The lesson is that lending economics depend on more than the borrow rate.
Researchers comparing supplier returns should understand utilization, rate calculations, and reserve allocation rather than assuming all borrower interest flows directly to suppliers.
@DeFi_JUST @justinsuntron
#TRONEcoStar🔥
