Interest Rates
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YieldBlox's interest rates are based on demand and will fluctuate based on the borrowed assets utilization ratio. Interest rates accrue onto the borrower's liability balance over the lifecycle of their loans. Interest does not need to be repaid until loan repayment.
An assets is the percentage of deposited assets in the pool that are currently lent out. It is used to calculate the paid by borrowers.
The fees generated by interest are paid to the lending pool. Lenders will receive these fees when they burn the pool tokens they received by lending.
Additionally, the underlying assets YBX fee allocation value is greater than 0, a corresponding portion of interest fees are used to repurchase and distribute YBX to . For example if an assets YBX fee allocation is set to .1, 10% of interest paid by borrowers of that asset is used to purchase YBX and send it to the YBX escrow pool, which will distribute the YBX to escrows when they burn their veYBX upon escrow unlock. YBX fee allocations are set by .