> For the complete documentation index, see [llms.txt](https://docs.cream.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.cream.finance/polygon/lending/interest-rate-model.md).

# Interest Rate Model

## APY Function

**Borrow APY**

\= \[1 + Base + Multiplier \* min(UtilizationRate, Kink) + max(JumpMultiplier \* UtilizationRate - Kink, 0)] ^ 15768000 - 1

**Supply APY**

\= Distribute (Interest Paid by Borrowers Per Block - Reserve) to all suppliers, and convert it into APY

\= Distribute \[(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] \* Total Borrow \* (1 - Reserve Factor) to all suppliers, and convert it into APY

\= {\[(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] \* Total Borrow \* (1 - Reserve Factor) / Total Supply}, and convert it into APY

\= {1 + \[(1 + Borrow APY) ^ (1 / BlocksPerYear) - 1] \* Total Borrow \* (1 - Reserve Factor) / Total Supply} ^ BlocksPerYear - 1

\= **{1+\[(1+Borrow APY)^(1/BlocksPerYear)-1]\*(1-Reserve Factor)\*Utilization Rate}^BlocksPerYear-1**

{% hint style="info" %}
BlocksPerYear = 15,768,000 (2 sec per block)
{% endhint %}

{% hint style="info" %}
Find other variables in [Markets](https://app.cream.finance/markets)
{% endhint %}

## Major

![](/files/-MdMON6tU8KjLiYlbDYm)

| Parameter        | Value                                                                                                                    |
| ---------------- | ------------------------------------------------------------------------------------------------------------------------ |
| Category         | Major                                                                                                                    |
| Tokens           | MATIC, WETH, WBTC, ibBTC                                                                                                 |
| Base             | 0%                                                                                                                       |
| Multiplier       | 15%                                                                                                                      |
| JumpMultiplier   | 500%                                                                                                                     |
| Kink 1           | 80%                                                                                                                      |
| Kink 2           | 90%                                                                                                                      |
| Contract Address | [0xB1FD648D8CA4bE22445963554b85AbbFC210BC83](https://polygonscan.com/address/0xB1FD648D8CA4bE22445963554b85AbbFC210BC83) |

## Stable

![](/files/-MdMLOOaAC-oXb_-If8v)

| Parameter        | Value                                                                                                                    |
| ---------------- | ------------------------------------------------------------------------------------------------------------------------ |
| Category         | Stable                                                                                                                   |
| Tokens           | USDT, USDC, DAI                                                                                                          |
| Base             | 0%                                                                                                                       |
| Multiplier       | 23%                                                                                                                      |
| JumpMultiplier   | 800%                                                                                                                     |
| Kink 1           | 80%                                                                                                                      |
| Kink 2           | 90%                                                                                                                      |
| Contract Address | [0x379555965fcdbA7A40e8B5b5eF4786f51ADeeF31](https://polygonscan.com/address/0x379555965fcdbA7A40e8B5b5eF4786f51ADeeF31) |

## Governance

![](/files/-MdMOaArrJwLDIvr_qP9)

| Parameter        | Value                                                                                                                    |
| ---------------- | ------------------------------------------------------------------------------------------------------------------------ |
| Category         | Governance                                                                                                               |
| Tokens           | LINK, SUSHI, CRV, QUICK, AAVE, DPI, FXS, SNX, UNI                                                                        |
| Base             | 0%                                                                                                                       |
| Multiplier       | 20%                                                                                                                      |
| JumpMultiplier   | 500%                                                                                                                     |
| Kink 1           | 70%                                                                                                                      |
| Kink 2           | 80%                                                                                                                      |
| Contract Address | [0x06288754f31d100039b21e62a429e4B81E56B626](https://polygonscan.com/address/0x06288754f31d100039b21e62a429e4B81E56B626) |