Try Quests to earn cryptoLending and borrowing rates. How are they determined?
Per the whitepaper: "interest rates (the “price” of money) should increase as a function of demand; when demand is low, interest rates should be low, and vise versa when demand is high." Just as price is a function of demand, we see that Compound forces interest rates to behave in similar way. Below we explore how price volatility and COMP distribution APYs impact demand in turn impacting APYs.