Interest Rate Mode Switcher

WHAT IT DOES

Interest Rate Mode Switcher is a DeFi tool that lets you switch your debt between stable and variable interest rate modes in lending protocols like Aave. Stable rates offer predictability — your interest rate remains fixed for a period, protecting you from market volatility. Variable rates fluctuate with supply and demand, potentially offering lower costs when utilization is low but carrying the risk of sudden spikes. This tool reads your current debt position, the current stable and variable rates, and your health factor, then helps you decide which mode is more advantageous. It executes the switch in a single transaction, saving you from manually navigating the protocol's interface.

HOW TO USE

Connect your EVM wallet via the BGWallet bridge. Enter your lending pool address and your debt token address. Click "Preview Rates" to see current stable and variable rates, your current mode, debt amount, and health factor. The tool provides a recommendation based on which rate is lower. Select your target mode (Stable or Variable) from the dropdown, adjust slippage tolerance if needed, then click "Switch Mode" to sign and broadcast the transaction. The tool shows progress updates and provides a transaction hash for tracking.

TECHNICAL MECHANISM

The tool fetches current rates from the lending pool contract using the appropriate view functions — typically `getReserveData` or similar. It computes the stable rate (which may include a premium) and the variable rate (based on utilization). The health factor is calculated as (collateral_value * liquidation_threshold) / debt_value. When you execute a switch, the tool calls the pool's `swapBorrowRateMode` function, which changes the interest rate mode for your debt position. This operation is atomic and updates the rate mode without requiring you to repay or re-borrow. The tool checks that the switch would not negatively impact your health factor and warns you if the chosen mode carries higher risk.

WHAT IT CANNOT SEE

This tool cannot predict future interest rate changes or guarantee that the chosen mode will remain optimal after switching. Stable rates are typically higher than variable rates during periods of low utilization but can become significantly lower if variable rates spike. The tool also cannot anticipate protocol upgrades, changes to the rate model, or shifts in market conditions that could affect your borrowing costs. The recommendation is based on current rates and may not reflect the best long-term strategy. Always consider your risk tolerance and market outlook before switching — stable rates offer peace of mind, while variable rates can save money but carry more uncertainty.

PLEASE NOTE

EVM chains only. This tool relies on the BGWallet connector and will not function on Solana, Tron, Starknet, SUI, TON, Aptos, Bitcoin, Cosmos, or XRP. The user is responsible for ensuring the supplied contract addresses are correct and that the lending protocol supports interest rate mode switching. Not all protocols offer both stable and variable modes — check your protocol's documentation first.