How could Compound's interest accruing every block? How's that implemented?

by nrek   Last Updated April 16, 2019 01:28 AM

Here I'm referring to https://compound.finance, which is quite an awesome product.

One thing inspires me most is that the interests accrued in Compound are updated per block. How's that even possible?

From its FAQ (https://medium.com/compound-finance/faq-1a2636713b69):

How often is interest calculated?

The interest rates you see in the Interface and Market Overview are quoted as annual interest rates. Interest accrues each Ethereum block; every ~15 seconds, your balance will increase by (1/2102400) of the quoted interest rate. Really!

I still couldn't figure out how to do that, as I'm seeing exactly it works even without frontend UI - by setting requestedAmount to be 0xff...ff.

Can someone please educate me on this? Thanks.



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