DeFi Lending Market Velocity & Health Simulator

Market Parameters

Total Supply (TVL $) $50,000,000

Total Borrowed ($) $37,500,000

Rate Curve Parameters

Optimal Utilization Threshold (U_optimal) 80%

Base Interest Rate 2.0%

Slope 1 Rate (Below Optimal) 6.0%

Slope 2 Penalty (Above Optimal) 60.0%

Reserve Factor 10.0%

Utilization Rate

75.00%

Active Borrows / TVL

Dynamic Borrow APY

7.625%

Cost for Active Borrowers

Dynamic Supply APY

5.147%

Net Organic Lender Yield

Capital Velocity

0.75

Turnover Ratio (B / S)

Dynamic Piecewise Interest Rate Curve vs Operating Point Healthy Velocity

Market Health Diagnostics

High capital productivity. The lending market maintains healthy interest turnover without triggering excessive slope 2 crunch penalties.

$12,500,000

Core Mathematical Model

Utilization Ratio (U): Borrowed / Supply

Borrow APY (U ≤ U_opt): Base + (U / U_opt) * Slope1

Borrow APY (U > U_opt): Base + Slope1 + ((U - U_opt) / (1 - U_opt)) * Slope2

Supply APY: Borrow APY * U * (1 - ReserveFactor)

Capital Velocity: Active Borrowed / Total TVL