The interest rate model related to the Peer-to-Peer Borrowing model.
The interest rate model for the Peer-to-Peer model will be based on a 10% margin between the APR charged to borrow and the APY the lender receives. From this 10% margin, 5% will go to the insurance fund, and 25% of the net interest income after insurance fund will be made available to net interest income available to Pixel Panther holders.
Since the risk of lending is being assessed by the borrowers and lenders, the platform will not adjust interest rates on this product class. Once a rate it set it will remain static for the life of the loan. When the borrower requests a loan, the greater the interest rate they request to borrow at, the quicker the community will be willing to offer a loan. The lender will take the collateral and duration into affect when deciding to provide liquidity.