Module 2 · Lesson 6 · 7 min

The reserve factor

What you'll be able to do

  • Explain Aave's supply rate formula, including the one term (unbacked aTokens) that makes supply utilization differ from borrow utilization.
  • Calculate a reserve's supply APR, the treasury's daily take and the reserve factor that would equalise two reserves.
  • Convert a stored ray rate into the APR and the APY an app would show, and say why the two sides grow differently.

This course is for members.

The DeFi University membership on Skool opens all 31 courses here, plus the live calls and community. Private coaching clients have access too.