arXiv q-fin· Ahzam Khan, Cavey Cool·· 6 hr agoAI Score61
arXiv Paper: Monotonicity of Supplier Revenue and Interest Rate Curve Design in Pooled Lending Markets
Depositing More Should Not Earn Less: Supplier Income Monotonicity and Rate Curve Design in Pooled Lending Markets
AI summary
An arXiv paper proposes that the necessary and sufficient condition for non-decreasing interest income of liquidity suppliers after deposit in pooled lending markets is α(1+η)≤1, where α is the supplier's share of final pool supply and η is the elasticity of borrowing rate to capital utilization.
Source:arXiv q-fin · arxiv.org