Interest Rate Model

One significant benefit of Avalon's CeDeFi lending model is that users can borrow stablecoins from CeFi institutions at a stable borrow rate, which is unaffected by utilization rates.

Avalon has secured access to billions of USDT and USDC, both of which offer stable borrow rates. The borrow rate for Avalon's users is determined by the borrow rate set by CeFi institutions, plus an additional interest rate spread charged by Avalon as a service fee.

This setup ensures stability and predictability in borrowing costs for users, leveraging the reliability of CeFi institutions while enhancing the service with Avalon's fee structure.