The interest rates at any time depend from the
utilizationRate and the
kinkRate correspond with the interest rate when the
kinkUtilizationRate, so whenever the
kinkRate is higher also the interest rates are higher, and viceversa. The
kinkRate is a parameter that is calculated algorithmically by the protocol according to historical supply and demand. Whenever the
utilizationRate is greater than the
kinkRate increases, and viceversa. This ensures that incentives will always be balanced and that borrowers pay a fair interest to lenders based on market demand and without the need for external intervention.