Interest accrual
The KIBT balance increase is defined by the associated KUMA NFT. It is important to keep in mind that the interest rate defined in a bond is usually defined linearly. However, to achieve the same nominal interest at the maturity date, the actual cumulative rate differs.
Let's take the example of a bond with a face value of 100,000 EUR that has a linear rate of 5% every year for 10 years. At maturity date, the bond worths 150,000 EUR.
The cumulative rate is way to achieve the same result, 150,000 EUR at maturity date. In this example, having a linear rate of 5% and a cumulative rate of 4.137974% provide the same results after 10 years.
For integration of KIBT in DeFi protocols you can refer to this tab.
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