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Note that the period is currently 1 week, and the weighted debt is equal to the trove debt times the average interest rate in the system.
Hence, the upfront fee is rounded to zero when
debt * averageinterestrate/52e18 < 0
When the average the interest rate is 0.5% (5e15), then anyone borrowing less than 10400 (52e18 / 5e15) wei pays no fees.
Similarily, the interest rate charged on small troves can be rounded to zero. For a trove with 1e8 debt and an interest rate of 5e15, updating the interest rate every 12 seconds would not result in any interest owed:
1e8 * 5e15 * 12 < 31536000 * 1e18
The text was updated successfully, but these errors were encountered:
Note that the period is currently 1 week, and the weighted debt is equal to the trove debt times the average interest rate in the system.
Hence, the upfront fee is rounded to zero when
When the average the interest rate is 0.5% (5e15), then anyone borrowing less than 10400 (52e18 / 5e15) wei pays no fees.
Similarily, the interest rate charged on small troves can be rounded to zero. For a trove with 1e8 debt and an interest rate of 5e15, updating the interest rate every 12 seconds would not result in any interest owed:
The text was updated successfully, but these errors were encountered: