Throttle Module Explained

Role

The primary role of the Throttle Module is to adjust borrowing rates based on the market supply and demand dynamics. The Throttle Module constantly adjusts the borrowing rates based on the money being deposited into the pools, the amount borrowed from the pools, and the distribution of users for both.

This prevents too much money from either being deposited or borrowed, avoiding potential problems. It also stops any single wallet from having too much power over the pools via borrow limits and deposit limits, ensuring fair control. Overall, the Throttle Module ensures that borrowing and supply rates change at the best possible pace, keeping the lending pools healthy and efficient for everyone.

By monitoring and responding to these market conditions, the module helps maintain economic stability, optimize liquidity, and manage risks within the Blendy platform.

Components

The Throttle Module consists of the following key components:

• throttle_surcharge: An extra rate applied under specific market conditions.

• multiplier: A factor that scales the rate based on market utilization.

• critical_ratio: A threshold value for triggering rate adjustments.