№ 17 · Rates

Rate explorer.

AI curve vs the kink

The curve that moves before the cliff.

Legacy lending sets borrow rates with a kinked curve: cheap up to a target utilisation, then a cliff. The kink is placed by governance vote and stays put while the world changes. ımyo's AI-driven curve moves the whole surface with the risk environment — repricing before stress becomes a liquidity crisis, not after.

Drag both sliders. The dashed grey line is the legacy model; the solid line is the AI curve. The shaded band is the safety margin the AI opens up as stress rises. Parameters are illustrative, not quoted terms.

№ 17-A

Explore.

two sliders · one lesson

Share of supplied liquidity currently borrowed. High utilisation means lenders cannot exit — the risk both models exist to price.

Composite of the Sentinel signals: oracle dispersion, whale outflows, funding spreads, macro shocks. The legacy curve cannot see this input at all.

Legacy borrow APR
%
AI-curve borrow APR
%
Repricing lead
pp
AI optimal utilisation
%

№ 17-B

Why the kink fails institutions.

the argument
  • The kink is a lagging indicator. Its position encodes a governance vote from weeks ago. In April 2026 the market repriced in 48 hours; no proposal cycle moves at that speed. The Kelp post-mortem is the case study.
  • Rates are the first line of defence, not the last. A curve that steepens with Sentinel-observed stress throttles new leverage before utilisation pins at 100% — protecting lender exit liquidity when it matters most.
  • Macro-aware means macro-priced. Fed decisions, stablecoin rotations and whale flows all move the equilibrium price of on-chain credit. A static curve hands that spread to arbitrageurs; a dynamic one returns it to the pool.
  • Every adjustment is attested. Curve moves are signed by the Sentinel swarm inside TEEs — an auditable trail of why the venue repriced, which is what a risk committee actually asks for.
№ 17-C

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the other simulators