OK, I am experimenting it before going into the plunge. Here goes the screenshot, for record keeping ;-)
PS: It has dropped from 20+ % to 11.46% in two days, probably due to the heavy liquidation that happened, though I am still wrapping my head around the causation aka "does interest rate go up with BTC price goes down?"
PS: It has dropped from 20+ % to 11.46% in two days, probably due to the heavy liquidation that happened, though I am still wrapping my head around the causation aka "does interest rate go up with BTC price goes down?"
I believe the interest rate goes up with the demand.
People have alot of money in compound DAI, and now that the market is down, people are borrowing DAI to invest in cheap BTC/ETH.
By doing so, the demand grows, and i believe, with it the interest %.
Just like Uber, if there's a shortage of free drivers, the price goes up.