went digging into interEst rates on TBVs testnet today specifically why the number sitting on my borrow screen didnot feel like a flat predictable percentage the way I expecTed it to
turns out the raTe isnot flat at all. it follows a kink model tied to utilization below some optimal utilization point the rate climbs gently as more people borrow. above that point the curve gets steep fast on purPose
didnot get to actUally push utilization high enough myself to see the steep part kick in live since testnet liquidity and my own testing didnot line up that way but watching the gentle part move in real time as I borrowed was already more informative than any static number on a doCs page
what actually surpriised me this isnot just a pricing curve its a deliberate discouragement mechanism. the steep side exists specifically to make borrowing more expensive right when liquiditys getting scarce pushing utilization back down before the pool actually rUns dry
sat with that for a minuTe. most rate charts I have looked at in other protocols just show a number. this one is quietly doing risk management through pricing alone, no separate mechanism needed just the shape of the curve itself doing the woRk
have you ever actually watChed a rate move against you in real time or just read the number once and moVed on
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