The adaptive curve

Utilization is 70%. What is the error (err) the adaptive curve uses?

• −0.2, because 70% is 20 points below 90%
• −0.222, because below target err = (0.70 − 0.90) ÷ 0.90
• −2.0, because below target err = (0.70 − 0.90) ÷ 0.1

A market's rate at target is 3% and utilization is 100%. What is the instant borrow rate?

• 3%, because the instant curve only applies below target
• 6%, because the rate doubles at 100%
• 12%, because at err = 1 the curve gives 1 + 3 × 1 = 4 times the rate at target