Glossary of parameters
Every named constant that feeds the pricing and swap-market model, in one place. The values below are the defaults these were designed around — a specific market publishes its own on its page, and those are the ones it actually prices with.
| Param | Meaning | Value |
|---|---|---|
| U_kink | Utilisation level that flips the rate model into its spike regime | 0.90 |
| U_max | Hard utilisation ceiling — the swap market won't quote past this | 0.80 |
| L_max | Maximum leverage on deposited capital | 10× |
| κ_spike | Mean-reversion speed of the forward rate above the kink | 40 / yr |
| θ_spike | Long-run rate the forward estimate reverts toward above the kink | 9.0% |
| r_floor | Hard floor under the forward rate | 0.10% |
| σ_floor | Floor applied only to the settlement-budget tail, never the priced rate | 1.0% |
| R_target | Target early-liquidity return used in spread_return | 5.0% |
| T_ref | Reference tenor for scaling spread_risk | 90d |
| T_stress | Stress horizon cap inside spread_risk | 7d |
| k, beta | Level and steepness of the utilisation charge | 0.003, 1 |
| WAD | Fixed-point scale used throughout on-chain math (1e18 = 1.0) | 1e18 |