Interest Rate Models

Helix uses a dynamic interest rate strategy driven by the utilization rate of each asset. As more liquidity is borrowed from a reserve, interest rates rise to reflect reduced supply and incentivize depositors. Each asset’s rate curve is defined by governance-approved parameters, including:

1. Base Rate

2. Optimal utilization rate

3. Slope1 and Slope2 (rate increase before and after optimal utilization)

This adaptive model ensures competitive rates for borrowers while maintaining sufficient liquidity for suppliers and liquidations.

Supplying and borrowing in Helix is streamlined, transparent, and governed entirely by smart contracts on the Base network. Whether users are earning passive yield, accessing liquidity, executing advanced DeFi strategies, or participating in liquidations, Helix offers a capital-efficient and secure lending market. With support for advanced features like E-Mode, Isolation Mode, flash loans, and incentive mechanisms, Helix is built to meet the evolving needs of the DeFi ecosystem. Helix may support incentive programs to promote activity on either the supply or borrow side of specific assets. These incentives, if active are distributed proportionally based on user activity and managed by the protocol’s incentive controller. Rewards may be sourced from protocol governance, partners, or external DAOs seeking to bootstrap liquidity.