Harvest: interest rate logic (#720)

* initial feature scaffolding * implement interest keeper logic * basic AccrueInterest * accrue interest on borrow * update borrow index formula * update sample reserve factor * move AccrueInterest to begin blocker * refactor interest rate updates for accrue interest * use interest rate model from store * refactor begin blocker state machine * add reserve factor to interest model params * update comment * store money market instead of interest rate models * update test suite * use BorrowedCoins store key * update public functions and alias * unit tests, keeper test scaffolding * demo panic * address revisions * add 'normal no jump' test case * spy = 1 + borrow rate * update comment * APYToSPY unit test * per user borrow index list * interest keeper test * test: interest applied on successive borrows * varied snapshot times * test: multiple, varied snapshots * address revisions * add pending interest before validating new borrow * update makefile * address revisions * fix test
2024-12-23 23:05:18 +00:00 · 2020-12-03 22:50:35 +01:00 · 2020-12-03 22:50:35 +01:00 · 49d62dd076
commit 49d62dd076
parent 9c69ee2fbf
18 changed files with 1247 additions and 86 deletions
--- a/4
+++ b/4
@ -101,7 +101,7 @@ clean:
 # Set to exclude riot links as they trigger false positives
 link-check:
 	@go get -u github.com/raviqqe/liche@f57a5d1c5be4856454cb26de155a65a4fd856ee3
-	liche -r . --exclude "^http://127.*|^https://riot.im/app*|^http://kava-testnet*|^https://testnet-dex*|^https://kava3.data.kava.io*|^https://ipfs.io*|^https://apps.apple.com*"
+	liche -r . --exclude "^http://127.*|^https://riot.im/app*|^http://kava-testnet*|^https://testnet-dex*|^https://kava3.data.kava.io*|^https://ipfs.io*|^https://apps.apple.com*|^https://kava.quicksync.io*"


 lint:
@ -201,4 +201,4 @@ docs-develop:
 docs-build:
 	@cd docs && \
 	npm install && \
-	npm run build
+	npm run build
--- a/x/harvest/alias.go
+++ b/x/harvest/alias.go
@ -50,6 +50,10 @@ var (
 	// function aliases
 	NewKeeper                        = keeper.NewKeeper
 	NewQuerier                       = keeper.NewQuerier
+	CalculateUtilizationRatio        = keeper.CalculateUtilizationRatio
+	CalculateBorrowRate              = keeper.CalculateBorrowRate
+	CalculateInterestFactor          = keeper.CalculateInterestFactor
+	APYToSPY                         = keeper.APYToSPY
 	ClaimKey                         = types.ClaimKey
 	DefaultGenesisState              = types.DefaultGenesisState
 	DefaultParams                    = types.DefaultParams
--- a/x/harvest/keeper/borrow.go
+++ b/x/harvest/keeper/borrow.go
@ -11,6 +11,17 @@ import (

 // Borrow funds
 func (k Keeper) Borrow(ctx sdk.Context, borrower sdk.AccAddress, coins sdk.Coins) error {
+	// Set any new denoms' global borrow index to 1.0
+	for _, coin := range coins {
+		_, foundBorrowIndex := k.GetBorrowIndex(ctx, coin.Denom)
+		if !foundBorrowIndex {
+			k.SetBorrowIndex(ctx, coin.Denom, sdk.OneDec())
+		}
+	}
+
+	// Sync user's borrow balance (only for coins user is requesting to borrow)
+	k.SyncBorrowInterest(ctx, borrower, coins)
+
 	// Validate borrow amount within user and protocol limits
 	err := k.ValidateBorrow(ctx, borrower, coins)
 	if err != nil {
@ -34,22 +45,22 @@ func (k Keeper) Borrow(ctx sdk.Context, borrower sdk.AccAddress, coins sdk.Coins
 		}
 	}

-	// Update user's borrow in store
 	borrow, found := k.GetBorrow(ctx, borrower)
 	if !found {
-		borrow = types.NewBorrow(borrower, coins)
-	} else {
-		borrow.Amount = borrow.Amount.Add(coins...)
+		return types.ErrBorrowNotFound // This should never happen
 	}
+	// Add the newly borrowed coins to the user's borrow object
+	borrow.Amount = borrow.Amount.Add(coins...)
 	k.SetBorrow(ctx, borrow)

-	// Update total borrowed amount
+	// Update total borrowed amount by newly borrowed coins. Don't add user's pending interest as
+	// it has already been included in the total borrowed coins by the BeginBlocker.
 	k.IncrementBorrowedCoins(ctx, coins)

 	ctx.EventManager().EmitEvent(
 		sdk.NewEvent(
 			types.EventTypeHarvestBorrow,
-			sdk.NewAttribute(types.AttributeKeyBorrower, borrow.Borrower.String()),
+			sdk.NewAttribute(types.AttributeKeyBorrower, borrower.String()),
 			sdk.NewAttribute(types.AttributeKeyBorrowCoins, coins.String()),
 		),
 	)
@ -57,6 +68,57 @@ func (k Keeper) Borrow(ctx sdk.Context, borrower sdk.AccAddress, coins sdk.Coins
 	return nil
 }

+// SyncBorrowInterest updates the user's owed interest on newly borrowed coins to the latest global state,
+// returning an sdk.Coins object containing the amount of newly accumulated interest.
+func (k Keeper) SyncBorrowInterest(ctx sdk.Context, borrower sdk.AccAddress, coins sdk.Coins) sdk.Coins {
+	totalNewInterest := sdk.Coins{}
+
+	// Update user's borrow index list for each asset in the 'coins' array.
+	// We use a list of BorrowIndexItem here because Amino doesn't support marshaling maps.
+	borrow, found := k.GetBorrow(ctx, borrower)
+	if !found { // User's first borrow
+		// Build borrow index list containing (denoms, borrow index value at borrow time)
+		var borrowIndexes types.BorrowIndexes
+		for _, coin := range coins {
+			borrowIndexValue, _ := k.GetBorrowIndex(ctx, coin.Denom)
+			borrowIndex := types.NewBorrowIndexItem(coin.Denom, borrowIndexValue)
+			borrowIndexes = append(borrowIndexes, borrowIndex)
+		}
+		borrow = types.NewBorrow(borrower, sdk.Coins{}, borrowIndexes)
+	} else { // User has existing borrow
+		for _, coin := range coins {
+			// Locate the borrow index item by coin denom in the user's list of borrow indexes
+			foundAtIndex := -1
+			for i := range borrow.Index {
+				if borrow.Index[i].Denom == coin.Denom {
+					foundAtIndex = i
+					break
+				}
+			}
+
+			borrowIndexValue, _ := k.GetBorrowIndex(ctx, coin.Denom)
+			if foundAtIndex == -1 { // First time user has borrowed this denom
+				borrow.Index = append(borrow.Index, types.NewBorrowIndexItem(coin.Denom, borrowIndexValue))
+			} else { // User has an existing borrow index for this denom
+				// Calculate interest owed by user since asset's last borrow index update
+				storedAmount := sdk.NewDecFromInt(borrow.Amount.AmountOf(coin.Denom))
+				userLastBorrowIndex := borrow.Index[foundAtIndex].Value
+				interest := (storedAmount.Quo(userLastBorrowIndex).Mul(borrowIndexValue)).Sub(storedAmount)
+				totalNewInterest = totalNewInterest.Add(sdk.NewCoin(coin.Denom, interest.TruncateInt()))
+				// We're synced up, so update user's borrow index value to match the current global borrow index value
+				borrow.Index[foundAtIndex].Value = borrowIndexValue
+			}
+		}
+		// Add all pending interest to user's borrow
+		borrow.Amount = borrow.Amount.Add(totalNewInterest...)
+	}
+
+	// Update user's borrow in the store
+	k.SetBorrow(ctx, borrow)
+
+	return totalNewInterest
+}
+
 // ValidateBorrow validates a borrow request against borrower and protocol requirements
 func (k Keeper) ValidateBorrow(ctx sdk.Context, borrower sdk.AccAddress, amount sdk.Coins) error {
 	if amount.IsZero() {
@ -70,7 +132,7 @@ func (k Keeper) ValidateBorrow(ctx sdk.Context, borrower sdk.AccAddress, amount
 		moneyMarket, ok := moneyMarketCache[coin.Denom]
 		// Fetch money market and store in local cache
 		if !ok {
-			newMoneyMarket, found := k.GetMoneyMarket(ctx, coin.Denom)
+			newMoneyMarket, found := k.GetMoneyMarketParam(ctx, coin.Denom)
 			if !found {
 				return sdkerrors.Wrapf(types.ErrMarketNotFound, "no market found for denom %s", coin.Denom)
 			}
@ -114,7 +176,7 @@ func (k Keeper) ValidateBorrow(ctx sdk.Context, borrower sdk.AccAddress, amount
 		moneyMarket, ok := moneyMarketCache[deposit.Amount.Denom]
 		// Fetch money market and store in local cache
 		if !ok {
-			newMoneyMarket, found := k.GetMoneyMarket(ctx, deposit.Amount.Denom)
+			newMoneyMarket, found := k.GetMoneyMarketParam(ctx, deposit.Amount.Denom)
 			if !found {
 				return sdkerrors.Wrapf(types.ErrMarketNotFound, "no market found for denom %s", deposit.Amount.Denom)
 			}
@ -140,7 +202,7 @@ func (k Keeper) ValidateBorrow(ctx sdk.Context, borrower sdk.AccAddress, amount
 			moneyMarket, ok := moneyMarketCache[borrowedCoin.Denom]
 			// Fetch money market and store in local cache
 			if !ok {
-				newMoneyMarket, found := k.GetMoneyMarket(ctx, borrowedCoin.Denom)
+				newMoneyMarket, found := k.GetMoneyMarketParam(ctx, borrowedCoin.Denom)
 				if !found {
 					return sdkerrors.Wrapf(types.ErrMarketNotFound, "no market found for denom %s", borrowedCoin.Denom)
 				}
--- a/x/harvest/keeper/borrow_test.go
+++ b/x/harvest/keeper/borrow_test.go
@ -275,12 +275,12 @@ func (suite *KeeperTestSuite) TestBorrow() {
 				),
 				},
 				types.MoneyMarkets{
-					types.NewMoneyMarket("usdx", true, tc.args.usdxBorrowLimit, sdk.MustNewDecFromStr("1"), "usdx:usd", sdk.NewInt(USDX_CF), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
-					types.NewMoneyMarket("busd", false, sdk.NewDec(100000000*BUSD_CF), sdk.MustNewDecFromStr("1"), "busd:usd", sdk.NewInt(BUSD_CF), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
-					types.NewMoneyMarket("ukava", false, sdk.NewDec(100000000*KAVA_CF), tc.args.loanToValueKAVA, "kava:usd", sdk.NewInt(KAVA_CF), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
-					types.NewMoneyMarket("btcb", false, sdk.NewDec(100000000*BTCB_CF), tc.args.loanToValueBTCB, "btcb:usd", sdk.NewInt(BTCB_CF), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
-					types.NewMoneyMarket("bnb", false, sdk.NewDec(100000000*BNB_CF), tc.args.loanToValueBNB, "bnb:usd", sdk.NewInt(BNB_CF), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
-					types.NewMoneyMarket("xyz", false, sdk.NewDec(1), tc.args.loanToValueBNB, "xyz:usd", sdk.NewInt(1), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
+					types.NewMoneyMarket("usdx", types.NewBorrowLimit(true, tc.args.usdxBorrowLimit, sdk.MustNewDecFromStr("1")), "usdx:usd", sdk.NewInt(USDX_CF), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
+					types.NewMoneyMarket("busd", types.NewBorrowLimit(false, sdk.NewDec(100000000*BUSD_CF), sdk.MustNewDecFromStr("1")), "busd:usd", sdk.NewInt(BUSD_CF), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
+					types.NewMoneyMarket("ukava", types.NewBorrowLimit(false, sdk.NewDec(100000000*KAVA_CF), tc.args.loanToValueKAVA), "kava:usd", sdk.NewInt(KAVA_CF), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
+					types.NewMoneyMarket("btcb", types.NewBorrowLimit(false, sdk.NewDec(100000000*BTCB_CF), tc.args.loanToValueBTCB), "btcb:usd", sdk.NewInt(BTCB_CF), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
+					types.NewMoneyMarket("bnb", types.NewBorrowLimit(false, sdk.NewDec(100000000*BNB_CF), tc.args.loanToValueBNB), "bnb:usd", sdk.NewInt(BNB_CF), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
+					types.NewMoneyMarket("xyz", types.NewBorrowLimit(false, sdk.NewDec(1), tc.args.loanToValueBNB), "xyz:usd", sdk.NewInt(1), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
 				},
 			), types.DefaultPreviousBlockTime, types.DefaultDistributionTimes)

--- a/x/harvest/keeper/claim_test.go
+++ b/x/harvest/keeper/claim_test.go
@ -265,8 +265,8 @@ func (suite *KeeperTestSuite) TestClaim() {
 				),
 				},
 				types.MoneyMarkets{
-					types.NewMoneyMarket("usdx", false, sdk.NewDec(1000000000000000), loanToValue, "usdx:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
-					types.NewMoneyMarket("ukava", false, sdk.NewDec(1000000000000000), loanToValue, "kava:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
+					types.NewMoneyMarket("usdx", types.NewBorrowLimit(false, sdk.NewDec(1000000000000000), loanToValue), "usdx:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
+					types.NewMoneyMarket("ukava", types.NewBorrowLimit(false, sdk.NewDec(1000000000000000), loanToValue), "kava:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
 				},
 			), types.DefaultPreviousBlockTime, types.DefaultDistributionTimes)
 			tApp.InitializeFromGenesisStates(authGS, app.GenesisState{types.ModuleName: types.ModuleCdc.MustMarshalJSON(harvestGS)})
--- a/x/harvest/keeper/deposit.go
+++ b/x/harvest/keeper/deposit.go
@ -10,7 +10,6 @@ import (

 // Deposit deposit
 func (k Keeper) Deposit(ctx sdk.Context, depositor sdk.AccAddress, amount sdk.Coin) error {
-
 	err := k.ValidateDeposit(ctx, amount)
 	if err != nil {
 		return err
@ -59,6 +58,7 @@ func (k Keeper) Withdraw(ctx sdk.Context, depositor sdk.AccAddress, amount sdk.C
 	if !found {
 		return sdkerrors.Wrapf(types.ErrDepositNotFound, "no %s deposit found for %s", amount.Denom, depositor)
 	}
+
 	if !deposit.Amount.IsGTE(amount) {
 		return sdkerrors.Wrapf(types.ErrInvalidWithdrawAmount, "%s>%s", amount, deposit.Amount)
 	}
--- a/x/harvest/keeper/deposit_test.go
+++ b/x/harvest/keeper/deposit_test.go
@ -108,8 +108,8 @@ func (suite *KeeperTestSuite) TestDeposit() {
 				),
 				},
 				types.MoneyMarkets{
-					types.NewMoneyMarket("usdx", false, sdk.NewDec(1000000000000000), loanToValue, "usdx:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
-					types.NewMoneyMarket("ukava", false, sdk.NewDec(1000000000000000), loanToValue, "kava:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
+					types.NewMoneyMarket("usdx", types.NewBorrowLimit(false, sdk.NewDec(1000000000000000), loanToValue), "usdx:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
+					types.NewMoneyMarket("ukava", types.NewBorrowLimit(false, sdk.NewDec(1000000000000000), loanToValue), "kava:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
 				},
 			), types.DefaultPreviousBlockTime, types.DefaultDistributionTimes)
 			tApp.InitializeFromGenesisStates(authGS, app.GenesisState{types.ModuleName: types.ModuleCdc.MustMarshalJSON(harvestGS)})
@ -251,8 +251,8 @@ func (suite *KeeperTestSuite) TestWithdraw() {
 				),
 				},
 				types.MoneyMarkets{
-					types.NewMoneyMarket("usdx", false, sdk.NewDec(1000000000000000), loanToValue, "usdx:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
-					types.NewMoneyMarket("ukava", false, sdk.NewDec(1000000000000000), loanToValue, "kava:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
+					types.NewMoneyMarket("usdx", types.NewBorrowLimit(false, sdk.NewDec(1000000000000000), loanToValue), "usdx:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
+					types.NewMoneyMarket("ukava", types.NewBorrowLimit(false, sdk.NewDec(1000000000000000), loanToValue), "kava:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
 				},
 			), types.DefaultPreviousBlockTime, types.DefaultDistributionTimes)
 			tApp.InitializeFromGenesisStates(authGS, app.GenesisState{types.ModuleName: types.ModuleCdc.MustMarshalJSON(harvestGS)})
--- a/x/harvest/keeper/interest.go
+++ b/x/harvest/keeper/interest.go
@ -2,30 +2,192 @@ package keeper

 import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
+	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
 	"github.com/kava-labs/kava/x/harvest/types"
 )

-// ApplyInterestRateUpdates translates the current interest rate models from the params to the store
+var (
+	scalingFactor  = 1e18
+	secondsPerYear = 31536000
+)
+
+// ApplyInterestRateUpdates translates the current interest rate models from the params to the store,
+// with each money market accruing interest.
 func (k Keeper) ApplyInterestRateUpdates(ctx sdk.Context) {
 	denomSet := map[string]bool{}

 	params := k.GetParams(ctx)
 	for _, mm := range params.MoneyMarkets {
-		model, found := k.GetInterestRateModel(ctx, mm.Denom)
+		// Set any new money markets in the store
+		moneyMarket, found := k.GetMoneyMarket(ctx, mm.Denom)
 		if !found {
-			k.SetInterestRateModel(ctx, mm.Denom, mm.InterestRateModel)
-			continue
+			moneyMarket = mm
+			k.SetMoneyMarket(ctx, mm.Denom, moneyMarket)
 		}
-		if !model.Equal(mm.InterestRateModel) {
-			k.SetInterestRateModel(ctx, mm.Denom, mm.InterestRateModel)
+
+		// Accrue interest according to the current money markets in the store
+		err := k.AccrueInterest(ctx, mm.Denom)
+		if err != nil {
+			panic(err)
+		}
+
+		// Update the interest rate in the store if the params have changed
+		if !moneyMarket.Equal(mm) {
+			k.SetMoneyMarket(ctx, mm.Denom, mm)
 		}
 		denomSet[mm.Denom] = true
 	}

-	k.IterateInterestRateModels(ctx, func(denom string, i types.InterestRateModel) bool {
+	// Edge case: money markets removed from params that still exist in the store
+	k.IterateMoneyMarkets(ctx, func(denom string, i types.MoneyMarket) bool {
 		if !denomSet[denom] {
-			k.DeleteInterestRateModel(ctx, denom)
+			// Accrue interest according to current store money market
+			err := k.AccrueInterest(ctx, denom)
+			if err != nil {
+				panic(err)
+			}
+
+			// Delete the money market from the store
+			k.DeleteMoneyMarket(ctx, denom)
 		}
 		return false
 	})
 }
+
+// AccrueInterest applies accrued interest to total borrows and reserves by calculating
+// interest from the last checkpoint time and writing the updated values to the store.
+func (k Keeper) AccrueInterest(ctx sdk.Context, denom string) error {
+
+	previousAccrualTime, found := k.GetPreviousAccrualTime(ctx, denom)
+	if !found {
+		k.SetPreviousAccrualTime(ctx, denom, ctx.BlockTime())
+		return nil
+	}
+
+	timeElapsed := ctx.BlockTime().Unix() - previousAccrualTime.Unix()
+	if timeElapsed == 0 {
+		return nil
+	}
+
+	// Get available harvest module account cash on hand
+	cashPrior := k.supplyKeeper.GetModuleAccount(ctx, types.ModuleName).GetCoins().AmountOf(denom)
+
+	// Get prior borrows
+	borrowsPrior := sdk.NewCoin(denom, sdk.ZeroInt())
+	borrowCoinsPrior, foundBorrowCoinsPrior := k.GetBorrowedCoins(ctx)
+	if foundBorrowCoinsPrior {
+		borrowsPrior = sdk.NewCoin(denom, borrowCoinsPrior.AmountOf(denom))
+	}
+
+	reservesPrior, foundReservesPrior := k.GetTotalReserves(ctx, denom)
+	if !foundReservesPrior {
+		newReservesPrior := sdk.NewCoin(denom, sdk.ZeroInt())
+		k.SetTotalReserves(ctx, denom, newReservesPrior)
+		reservesPrior = newReservesPrior
+	}
+
+	borrowIndexPrior, foundBorrowIndexPrior := k.GetBorrowIndex(ctx, denom)
+	if !foundBorrowIndexPrior {
+		newBorrowIndexPrior := sdk.MustNewDecFromStr("1.0")
+		k.SetBorrowIndex(ctx, denom, newBorrowIndexPrior)
+		borrowIndexPrior = newBorrowIndexPrior
+	}
+
+	// Fetch money market from the store
+	mm, found := k.GetMoneyMarket(ctx, denom)
+	if !found {
+		return sdkerrors.Wrapf(types.ErrMoneyMarketNotFound, "%s", denom)
+	}
+
+	// GetBorrowRate calculates the current interest rate based on utilization (the fraction of supply that has been borrowed)
+	borrowRateApy, err := CalculateBorrowRate(mm.InterestRateModel, sdk.NewDecFromInt(cashPrior), sdk.NewDecFromInt(borrowsPrior.Amount), sdk.NewDecFromInt(reservesPrior.Amount))
+	if err != nil {
+		return err
+	}
+
+	// Convert from APY to SPY, expressed as (1 + borrow rate)
+	borrowRateSpy, err := APYToSPY(sdk.OneDec().Add(borrowRateApy))
+	if err != nil {
+		return err
+	}
+
+	interestFactor := CalculateInterestFactor(borrowRateSpy, sdk.NewInt(timeElapsed))
+	interestAccumulated := (interestFactor.Mul(sdk.NewDecFromInt(borrowsPrior.Amount)).TruncateInt()).Sub(borrowsPrior.Amount)
+	totalBorrowInterestAccumulated := sdk.NewCoins(sdk.NewCoin(denom, interestAccumulated))
+	totalReservesNew := reservesPrior.Add(sdk.NewCoin(denom, sdk.NewDecFromInt(interestAccumulated).Mul(mm.ReserveFactor).TruncateInt()))
+	borrowIndexNew := borrowIndexPrior.Mul(interestFactor)
+
+	k.SetBorrowIndex(ctx, denom, borrowIndexNew)
+	k.IncrementBorrowedCoins(ctx, totalBorrowInterestAccumulated)
+	k.SetTotalReserves(ctx, denom, totalReservesNew)
+	k.SetPreviousAccrualTime(ctx, denom, ctx.BlockTime())
+	return nil
+}
+
+// CalculateBorrowRate calculates the borrow rate, which is the current APY expressed as a decimal
+// based on the current utilization.
+func CalculateBorrowRate(model types.InterestRateModel, cash, borrows, reserves sdk.Dec) (sdk.Dec, error) {
+	utilRatio := CalculateUtilizationRatio(cash, borrows, reserves)
+
+	// Calculate normal borrow rate (under kink)
+	if utilRatio.LTE(model.Kink) {
+		return utilRatio.Mul(model.BaseMultiplier).Add(model.BaseRateAPY), nil
+	}
+
+	// Calculate jump borrow rate (over kink)
+	normalRate := model.Kink.Mul(model.BaseMultiplier).Add(model.BaseRateAPY)
+	excessUtil := utilRatio.Sub(model.Kink)
+	return excessUtil.Mul(model.JumpMultiplier).Add(normalRate), nil
+}
+
+// CalculateUtilizationRatio calculates an asset's current utilization rate
+func CalculateUtilizationRatio(cash, borrows, reserves sdk.Dec) sdk.Dec {
+	// Utilization rate is 0 when there are no borrows
+	if borrows.Equal(sdk.ZeroDec()) {
+		return sdk.ZeroDec()
+	}
+
+	totalSupply := cash.Add(borrows).Sub(reserves)
+	if totalSupply.IsNegative() {
+		return sdk.OneDec()
+	}
+
+	return sdk.MinDec(sdk.OneDec(), borrows.Quo(totalSupply))
+}
+
+// CalculateInterestFactor calculates the simple interest scaling factor,
+// which is equal to: (per-second interest rate * number of seconds elapsed)
+// Will return 1.000x, multiply by principal to get new principal with added interest
+func CalculateInterestFactor(perSecondInterestRate sdk.Dec, secondsElapsed sdk.Int) sdk.Dec {
+	scalingFactorUint := sdk.NewUint(uint64(scalingFactor))
+	scalingFactorInt := sdk.NewInt(int64(scalingFactor))
+
+	// Convert per-second interest rate to a uint scaled by 1e18
+	interestMantissa := sdk.NewUint(perSecondInterestRate.MulInt(scalingFactorInt).RoundInt().Uint64())
+	// Convert seconds elapsed to uint (*not scaled*)
+	secondsElapsedUint := sdk.NewUint(secondsElapsed.Uint64())
+	// Calculate the interest factor as a uint scaled by 1e18
+	interestFactorMantissa := sdk.RelativePow(interestMantissa, secondsElapsedUint, scalingFactorUint)
+
+	// Convert interest factor to an unscaled sdk.Dec
+	return sdk.NewDecFromBigInt(interestFactorMantissa.BigInt()).QuoInt(scalingFactorInt)
+}
+
+// APYToSPY converts the input annual interest rate. For example, 10% apy would be passed as 1.10.
+// SPY = Per second compounded interest rate is how cosmos mathematically represents APY.
+func APYToSPY(apy sdk.Dec) (sdk.Dec, error) {
+	// Note: any APY 179 or greater will cause an out-of-bounds error
+	root, err := apy.ApproxRoot(uint64(secondsPerYear))
+	if err != nil {
+		return sdk.ZeroDec(), err
+	}
+	return root, nil
+}
+
+// minInt64 returns the smaller of x or y
+func minDec(x, y sdk.Dec) sdk.Dec {
+	if x.GT(y) {
+		return y
+	}
+	return x
+}
--- a/x/harvest/keeper/interest_test.go
+++ b/x/harvest/keeper/interest_test.go
@ -0,0 +1,791 @@
+package keeper_test
+
+import (
+	"testing"
+	"time"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/stretchr/testify/suite"
+	abci "github.com/tendermint/tendermint/abci/types"
+	"github.com/tendermint/tendermint/crypto"
+	tmtime "github.com/tendermint/tendermint/types/time"
+
+	"github.com/kava-labs/kava/app"
+	"github.com/kava-labs/kava/x/harvest"
+	"github.com/kava-labs/kava/x/harvest/types"
+	"github.com/kava-labs/kava/x/pricefeed"
+)
+
+type InterestTestSuite struct {
+	suite.Suite
+}
+
+func (suite *InterestTestSuite) TestCalculateUtilizationRatio() {
+	type args struct {
+		cash          sdk.Dec
+		borrows       sdk.Dec
+		reserves      sdk.Dec
+		expectedValue sdk.Dec
+	}
+
+	type test struct {
+		name string
+		args args
+	}
+
+	testCases := []test{
+		{
+			"normal",
+			args{
+				cash:          sdk.MustNewDecFromStr("1000"),
+				borrows:       sdk.MustNewDecFromStr("5000"),
+				reserves:      sdk.MustNewDecFromStr("100"),
+				expectedValue: sdk.MustNewDecFromStr("0.847457627118644068"),
+			},
+		},
+		{
+			"high util ratio",
+			args{
+				cash:          sdk.MustNewDecFromStr("1000"),
+				borrows:       sdk.MustNewDecFromStr("250000"),
+				reserves:      sdk.MustNewDecFromStr("100"),
+				expectedValue: sdk.MustNewDecFromStr("0.996412913511359107"),
+			},
+		},
+		{
+			"very high util ratio",
+			args{
+				cash:          sdk.MustNewDecFromStr("1000"),
+				borrows:       sdk.MustNewDecFromStr("250000000000"),
+				reserves:      sdk.MustNewDecFromStr("100"),
+				expectedValue: sdk.MustNewDecFromStr("0.999999996400000013"),
+			},
+		},
+		{
+			"low util ratio",
+			args{
+				cash:          sdk.MustNewDecFromStr("1000"),
+				borrows:       sdk.MustNewDecFromStr("50"),
+				reserves:      sdk.MustNewDecFromStr("100"),
+				expectedValue: sdk.MustNewDecFromStr("0.052631578947368421"),
+			},
+		},
+		{
+			"very low util ratio",
+			args{
+				cash:          sdk.MustNewDecFromStr("10000000"),
+				borrows:       sdk.MustNewDecFromStr("50"),
+				reserves:      sdk.MustNewDecFromStr("100"),
+				expectedValue: sdk.MustNewDecFromStr("0.000005000025000125"),
+			},
+		},
+	}
+
+	for _, tc := range testCases {
+		suite.Run(tc.name, func() {
+			utilRatio := harvest.CalculateUtilizationRatio(tc.args.cash, tc.args.borrows, tc.args.reserves)
+			suite.Require().Equal(tc.args.expectedValue, utilRatio)
+		})
+	}
+}
+
+func (suite *InterestTestSuite) TestCalculateBorrowRate() {
+	type args struct {
+		cash          sdk.Dec
+		borrows       sdk.Dec
+		reserves      sdk.Dec
+		model         types.InterestRateModel
+		expectedValue sdk.Dec
+	}
+
+	type test struct {
+		name string
+		args args
+	}
+
+	// Normal model has:
+	// 	- BaseRateAPY:      0.0
+	// 	- BaseMultiplier:   0.1
+	// 	- Kink:             0.8
+	// 	- JumpMultiplier:   0.5
+	normalModel := types.NewInterestRateModel(sdk.MustNewDecFromStr("0"), sdk.MustNewDecFromStr("0.1"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("0.5"))
+
+	testCases := []test{
+		{
+			"normal no jump",
+			args{
+				cash:          sdk.MustNewDecFromStr("5000"),
+				borrows:       sdk.MustNewDecFromStr("1000"),
+				reserves:      sdk.MustNewDecFromStr("1000"),
+				model:         normalModel,
+				expectedValue: sdk.MustNewDecFromStr("0.020000000000000000"),
+			},
+		},
+		{
+			"normal with jump",
+			args{
+				cash:          sdk.MustNewDecFromStr("1000"),
+				borrows:       sdk.MustNewDecFromStr("5000"),
+				reserves:      sdk.MustNewDecFromStr("100"),
+				model:         normalModel,
+				expectedValue: sdk.MustNewDecFromStr("0.103728813559322034"),
+			},
+		},
+		{
+			"high cash",
+			args{
+				cash:          sdk.MustNewDecFromStr("10000000"),
+				borrows:       sdk.MustNewDecFromStr("5000"),
+				reserves:      sdk.MustNewDecFromStr("100"),
+				model:         normalModel,
+				expectedValue: sdk.MustNewDecFromStr("0.000049975511999120"),
+			},
+		},
+		{
+			"high borrows",
+			args{
+				cash:          sdk.MustNewDecFromStr("1000"),
+				borrows:       sdk.MustNewDecFromStr("5000000000000"),
+				reserves:      sdk.MustNewDecFromStr("100"),
+				model:         normalModel,
+				expectedValue: sdk.MustNewDecFromStr("0.179999999910000000"),
+			},
+		},
+		{
+			"high reserves",
+			args{
+				cash:          sdk.MustNewDecFromStr("1000"),
+				borrows:       sdk.MustNewDecFromStr("5000"),
+				reserves:      sdk.MustNewDecFromStr("1000000000000"),
+				model:         normalModel,
+				expectedValue: sdk.MustNewDecFromStr("0.180000000000000000"),
+			},
+		},
+		{
+			"random numbers",
+			args{
+				cash:          sdk.MustNewDecFromStr("125"),
+				borrows:       sdk.MustNewDecFromStr("11"),
+				reserves:      sdk.MustNewDecFromStr("82"),
+				model:         normalModel,
+				expectedValue: sdk.MustNewDecFromStr("0.020370370370370370"),
+			},
+		},
+		{
+			"increased base multiplier",
+			args{
+				cash:          sdk.MustNewDecFromStr("1000"),
+				borrows:       sdk.MustNewDecFromStr("5000"),
+				reserves:      sdk.MustNewDecFromStr("100"),
+				model:         types.NewInterestRateModel(sdk.MustNewDecFromStr("0"), sdk.MustNewDecFromStr("0.5"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("1.0")),
+				expectedValue: sdk.MustNewDecFromStr("0.447457627118644068"),
+			},
+		},
+		{
+			"decreased kink",
+			args{
+				cash:          sdk.MustNewDecFromStr("1000"),
+				borrows:       sdk.MustNewDecFromStr("5000"),
+				reserves:      sdk.MustNewDecFromStr("100"),
+				model:         types.NewInterestRateModel(sdk.MustNewDecFromStr("0"), sdk.MustNewDecFromStr("0.5"), sdk.MustNewDecFromStr("0.1"), sdk.MustNewDecFromStr("1.0")),
+				expectedValue: sdk.MustNewDecFromStr("0.797457627118644068"),
+			},
+		},
+	}
+
+	for _, tc := range testCases {
+		suite.Run(tc.name, func() {
+			borrowRate, err := harvest.CalculateBorrowRate(tc.args.model, tc.args.cash, tc.args.borrows, tc.args.reserves)
+			suite.Require().NoError(err)
+			suite.Require().Equal(tc.args.expectedValue, borrowRate)
+		})
+	}
+}
+
+func (suite *InterestTestSuite) TestCalculateInterestFactor() {
+	type args struct {
+		perSecondInterestRate sdk.Dec
+		timeElapsed           sdk.Int
+		expectedValue         sdk.Dec
+	}
+
+	type test struct {
+		name string
+		args args
+	}
+
+	oneYearInSeconds := int64(31536000)
+
+	testCases := []test{
+		{
+			"1 year",
+			args{
+				perSecondInterestRate: sdk.MustNewDecFromStr("1.000000005555"),
+				timeElapsed:           sdk.NewInt(oneYearInSeconds),
+				expectedValue:         sdk.MustNewDecFromStr("1.191463614477847370"),
+			},
+		},
+		{
+			"10 year",
+			args{
+				perSecondInterestRate: sdk.MustNewDecFromStr("1.000000005555"),
+				timeElapsed:           sdk.NewInt(oneYearInSeconds * 10),
+				expectedValue:         sdk.MustNewDecFromStr("5.765113233897391189"),
+			},
+		},
+		{
+			"1 month",
+			args{
+				perSecondInterestRate: sdk.MustNewDecFromStr("1.000000005555"),
+				timeElapsed:           sdk.NewInt(oneYearInSeconds / 12),
+				expectedValue:         sdk.MustNewDecFromStr("1.014705619075717373"),
+			},
+		},
+		{
+			"1 day",
+			args{
+				perSecondInterestRate: sdk.MustNewDecFromStr("1.000000005555"),
+				timeElapsed:           sdk.NewInt(oneYearInSeconds / 365),
+				expectedValue:         sdk.MustNewDecFromStr("1.000480067194057924"),
+			},
+		},
+		{
+			"1 year: low interest rate",
+			args{
+				perSecondInterestRate: sdk.MustNewDecFromStr("1.000000000555"),
+				timeElapsed:           sdk.NewInt(oneYearInSeconds),
+				expectedValue:         sdk.MustNewDecFromStr("1.017656545925063632"),
+			},
+		},
+		{
+			"1 year, lower interest rate",
+			args{
+				perSecondInterestRate: sdk.MustNewDecFromStr("1.000000000055"),
+				timeElapsed:           sdk.NewInt(oneYearInSeconds),
+				expectedValue:         sdk.MustNewDecFromStr("1.001735985079841390"),
+			},
+		},
+		{
+			"1 year, lowest interest rate",
+			args{
+				perSecondInterestRate: sdk.MustNewDecFromStr("1.000000000005"),
+				timeElapsed:           sdk.NewInt(oneYearInSeconds),
+				expectedValue:         sdk.MustNewDecFromStr("1.000157692432076670"),
+			},
+		},
+		{
+			"1 year: high interest rate",
+			args{
+				perSecondInterestRate: sdk.MustNewDecFromStr("1.000000055555"),
+				timeElapsed:           sdk.NewInt(oneYearInSeconds),
+				expectedValue:         sdk.MustNewDecFromStr("5.766022095987868825"),
+			},
+		},
+		{
+			"1 year: higher interest rate",
+			args{
+				perSecondInterestRate: sdk.MustNewDecFromStr("1.000000555555"),
+				timeElapsed:           sdk.NewInt(oneYearInSeconds),
+				expectedValue:         sdk.MustNewDecFromStr("40628388.864535408465693310"),
+			},
+		},
+		// If we raise the per second interest rate too much we'll cause an integer overflow.
+		// For example, perSecondInterestRate: '1.000005555555' will cause a panic.
+		{
+			"1 year: highest interest rate",
+			args{
+				perSecondInterestRate: sdk.MustNewDecFromStr("1.000001555555"),
+				timeElapsed:           sdk.NewInt(oneYearInSeconds),
+				expectedValue:         sdk.MustNewDecFromStr("2017093013158200407564.613502861572552603"),
+			},
+		},
+	}
+
+	for _, tc := range testCases {
+		interestFactor := harvest.CalculateInterestFactor(tc.args.perSecondInterestRate, tc.args.timeElapsed)
+		suite.Require().Equal(tc.args.expectedValue, interestFactor)
+	}
+}
+
+func (suite *InterestTestSuite) TestAPYToSPY() {
+	type args struct {
+		apy           sdk.Dec
+		expectedValue sdk.Dec
+	}
+
+	type test struct {
+		name        string
+		args        args
+		expectError bool
+	}
+
+	testCases := []test{
+		{
+			"lowest apy",
+			args{
+				apy:           sdk.MustNewDecFromStr("0.005"),
+				expectedValue: sdk.MustNewDecFromStr("0.999999831991472557"),
+			},
+			false,
+		},
+		{
+			"lower apy",
+			args{
+				apy:           sdk.MustNewDecFromStr("0.05"),
+				expectedValue: sdk.MustNewDecFromStr("0.999999905005957279"),
+			},
+			false,
+		},
+		{
+			"medium-low apy",
+			args{
+				apy:           sdk.MustNewDecFromStr("0.5"),
+				expectedValue: sdk.MustNewDecFromStr("0.999999978020447332"),
+			},
+			false,
+		},
+		{
+			"medium-high apy",
+			args{
+				apy:           sdk.MustNewDecFromStr("5"),
+				expectedValue: sdk.MustNewDecFromStr("1.000000051034942717"),
+			},
+			false,
+		},
+		{
+			"high apy",
+			args{
+				apy:           sdk.MustNewDecFromStr("50"),
+				expectedValue: sdk.MustNewDecFromStr("1.000000124049443433"),
+			},
+			false,
+		},
+		{
+			"highest apy",
+			args{
+				apy:           sdk.MustNewDecFromStr("170"),
+				expectedValue: sdk.MustNewDecFromStr("1.000000162855113371"),
+			},
+			false,
+		},
+		{
+			"out of bounds error after 178",
+			args{
+				apy:           sdk.MustNewDecFromStr("178"),
+				expectedValue: sdk.ZeroDec(),
+			},
+			true,
+		},
+	}
+
+	for _, tc := range testCases {
+		suite.Run(tc.name, func() {
+			spy, err := harvest.APYToSPY(tc.args.apy)
+			if tc.expectError {
+				suite.Require().Error(err)
+			} else {
+				suite.Require().NoError(err)
+				suite.Require().Equal(tc.args.expectedValue, spy)
+			}
+		})
+	}
+}
+
+type ExpectedInterest struct {
+	elapsedTime  int64
+	shouldBorrow bool
+	borrowCoin   sdk.Coin
+}
+
+func (suite *KeeperTestSuite) TestInterest() {
+	type args struct {
+		user                     sdk.AccAddress
+		initialBorrowerCoins     sdk.Coins
+		initialModuleCoins       sdk.Coins
+		borrowCoinDenom          string
+		borrowCoins              sdk.Coins
+		interestRateModel        types.InterestRateModel
+		reserveFactor            sdk.Dec
+		expectedInterestSnaphots []ExpectedInterest
+	}
+
+	type errArgs struct {
+		expectPass bool
+		contains   string
+	}
+
+	type interestTest struct {
+		name    string
+		args    args
+		errArgs errArgs
+	}
+
+	normalModel := types.NewInterestRateModel(sdk.MustNewDecFromStr("0"), sdk.MustNewDecFromStr("0.1"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("0.5"))
+
+	oneDayInSeconds := int64(86400)
+	oneWeekInSeconds := int64(604800)
+	oneMonthInSeconds := int64(2592000)
+	oneYearInSeconds := int64(31536000)
+
+	testCases := []interestTest{
+		{
+			"one day",
+			args{
+				user:                 sdk.AccAddress(crypto.AddressHash([]byte("test"))),
+				initialBorrowerCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))),
+				initialModuleCoins:   sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(1000*KAVA_CF))),
+				borrowCoinDenom:      "ukava",
+				borrowCoins:          sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(20*KAVA_CF))),
+				interestRateModel:    normalModel,
+				reserveFactor:        sdk.MustNewDecFromStr("0.05"),
+				expectedInterestSnaphots: []ExpectedInterest{
+					{
+						elapsedTime:  oneDayInSeconds,
+						shouldBorrow: false,
+						borrowCoin:   sdk.Coin{},
+					},
+				},
+			},
+			errArgs{
+				expectPass: true,
+				contains:   "",
+			},
+		},
+		{
+			"one week",
+			args{
+				user:                 sdk.AccAddress(crypto.AddressHash([]byte("test"))),
+				initialBorrowerCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))),
+				initialModuleCoins:   sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(1000*KAVA_CF))),
+				borrowCoinDenom:      "ukava",
+				borrowCoins:          sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(20*KAVA_CF))),
+				interestRateModel:    normalModel,
+				reserveFactor:        sdk.MustNewDecFromStr("0.05"),
+				expectedInterestSnaphots: []ExpectedInterest{
+					{
+						elapsedTime:  oneWeekInSeconds,
+						shouldBorrow: false,
+						borrowCoin:   sdk.Coin{},
+					},
+				},
+			},
+			errArgs{
+				expectPass: true,
+				contains:   "",
+			},
+		},
+		{
+			"one month",
+			args{
+				user:                 sdk.AccAddress(crypto.AddressHash([]byte("test"))),
+				initialBorrowerCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))),
+				initialModuleCoins:   sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(1000*KAVA_CF))),
+				borrowCoinDenom:      "ukava",
+				borrowCoins:          sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(20*KAVA_CF))),
+				interestRateModel:    normalModel,
+				reserveFactor:        sdk.MustNewDecFromStr("0.05"),
+				expectedInterestSnaphots: []ExpectedInterest{
+					{
+						elapsedTime:  oneMonthInSeconds,
+						shouldBorrow: false,
+						borrowCoin:   sdk.Coin{},
+					},
+				},
+			},
+			errArgs{
+				expectPass: true,
+				contains:   "",
+			},
+		},
+		{
+			"one year",
+			args{
+				user:                 sdk.AccAddress(crypto.AddressHash([]byte("test"))),
+				initialBorrowerCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))),
+				initialModuleCoins:   sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(1000*KAVA_CF))),
+				borrowCoinDenom:      "ukava",
+				borrowCoins:          sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(20*KAVA_CF))),
+				interestRateModel:    normalModel,
+				reserveFactor:        sdk.MustNewDecFromStr("0.05"),
+				expectedInterestSnaphots: []ExpectedInterest{
+					{
+						elapsedTime:  oneYearInSeconds,
+						shouldBorrow: false,
+						borrowCoin:   sdk.Coin{},
+					},
+				},
+			},
+			errArgs{
+				expectPass: true,
+				contains:   "",
+			},
+		},
+		{
+			"0 reserve factor",
+			args{
+				user:                 sdk.AccAddress(crypto.AddressHash([]byte("test"))),
+				initialBorrowerCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))),
+				initialModuleCoins:   sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(1000*KAVA_CF))),
+				borrowCoinDenom:      "ukava",
+				borrowCoins:          sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(20*KAVA_CF))),
+				interestRateModel:    normalModel,
+				reserveFactor:        sdk.MustNewDecFromStr("0"),
+				expectedInterestSnaphots: []ExpectedInterest{
+					{
+						elapsedTime:  oneYearInSeconds,
+						shouldBorrow: false,
+						borrowCoin:   sdk.Coin{},
+					},
+				},
+			},
+			errArgs{
+				expectPass: true,
+				contains:   "",
+			},
+		},
+		{
+			"borrow during snapshot",
+			args{
+				user:                 sdk.AccAddress(crypto.AddressHash([]byte("test"))),
+				initialBorrowerCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))),
+				initialModuleCoins:   sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(1000*KAVA_CF))),
+				borrowCoinDenom:      "ukava",
+				borrowCoins:          sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(20*KAVA_CF))),
+				interestRateModel:    normalModel,
+				reserveFactor:        sdk.MustNewDecFromStr("0.05"),
+				expectedInterestSnaphots: []ExpectedInterest{
+					{
+						elapsedTime:  oneYearInSeconds,
+						shouldBorrow: true,
+						borrowCoin:   sdk.NewCoin("ukava", sdk.NewInt(1*KAVA_CF)),
+					},
+				},
+			},
+			errArgs{
+				expectPass: true,
+				contains:   "",
+			},
+		},
+		{
+			"multiple snapshots",
+			args{
+				user:                 sdk.AccAddress(crypto.AddressHash([]byte("test"))),
+				initialBorrowerCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))),
+				initialModuleCoins:   sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(1000*KAVA_CF))),
+				borrowCoinDenom:      "ukava",
+				borrowCoins:          sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(20*KAVA_CF))),
+				interestRateModel:    normalModel,
+				reserveFactor:        sdk.MustNewDecFromStr("0.05"),
+				expectedInterestSnaphots: []ExpectedInterest{
+					{
+						elapsedTime:  oneMonthInSeconds,
+						shouldBorrow: false,
+						borrowCoin:   sdk.Coin{},
+					},
+					{
+						elapsedTime:  oneMonthInSeconds,
+						shouldBorrow: false,
+						borrowCoin:   sdk.Coin{},
+					},
+				},
+			},
+			errArgs{
+				expectPass: true,
+				contains:   "",
+			},
+		},
+		{
+			"varied snapshots",
+			args{
+				user:                 sdk.AccAddress(crypto.AddressHash([]byte("test"))),
+				initialBorrowerCoins: sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(100*KAVA_CF))),
+				initialModuleCoins:   sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(1000*KAVA_CF))),
+				borrowCoinDenom:      "ukava",
+				borrowCoins:          sdk.NewCoins(sdk.NewCoin("ukava", sdk.NewInt(20*KAVA_CF))),
+				interestRateModel:    normalModel,
+				reserveFactor:        sdk.MustNewDecFromStr("0.05"),
+				expectedInterestSnaphots: []ExpectedInterest{
+					{
+						elapsedTime:  oneDayInSeconds,
+						shouldBorrow: false,
+						borrowCoin:   sdk.Coin{},
+					},
+					{
+						elapsedTime:  oneWeekInSeconds,
+						shouldBorrow: false,
+						borrowCoin:   sdk.Coin{},
+					},
+					{
+						elapsedTime:  oneMonthInSeconds,
+						shouldBorrow: false,
+						borrowCoin:   sdk.Coin{},
+					},
+					{
+						elapsedTime:  oneYearInSeconds,
+						shouldBorrow: false,
+						borrowCoin:   sdk.Coin{},
+					},
+				},
+			},
+			errArgs{
+				expectPass: true,
+				contains:   "",
+			},
+		},
+	}
+	for _, tc := range testCases {
+		suite.Run(tc.name, func() {
+			// Initialize test app and set context
+			tApp := app.NewTestApp()
+			ctx := tApp.NewContext(true, abci.Header{Height: 1, Time: tmtime.Now()})
+
+			// Auth module genesis state
+			authGS := app.NewAuthGenState(
+				[]sdk.AccAddress{tc.args.user},
+				[]sdk.Coins{tc.args.initialBorrowerCoins},
+			)
+
+			// Harvest module genesis state
+			harvestGS := types.NewGenesisState(types.NewParams(
+				true,
+				types.DistributionSchedules{
+					types.NewDistributionSchedule(true, "ukava", time.Date(2020, 10, 8, 14, 0, 0, 0, time.UTC), time.Date(2020, 11, 22, 14, 0, 0, 0, time.UTC), sdk.NewCoin("hard", sdk.NewInt(5000)), time.Date(2021, 11, 22, 14, 0, 0, 0, time.UTC), types.Multipliers{types.NewMultiplier(types.Small, 0, sdk.MustNewDecFromStr("0.33")), types.NewMultiplier(types.Medium, 6, sdk.MustNewDecFromStr("0.5")), types.NewMultiplier(types.Medium, 24, sdk.OneDec())}),
+				},
+				types.DelegatorDistributionSchedules{types.NewDelegatorDistributionSchedule(
+					types.NewDistributionSchedule(true, "usdx", time.Date(2020, 10, 8, 14, 0, 0, 0, time.UTC), time.Date(2025, 10, 8, 14, 0, 0, 0, time.UTC), sdk.NewCoin("hard", sdk.NewInt(500)), time.Date(2026, 10, 8, 14, 0, 0, 0, time.UTC), types.Multipliers{types.NewMultiplier(types.Small, 0, sdk.MustNewDecFromStr("0.33")), types.NewMultiplier(types.Medium, 6, sdk.MustNewDecFromStr("0.5")), types.NewMultiplier(types.Medium, 24, sdk.OneDec())}),
+					time.Hour*24,
+				),
+				},
+				types.MoneyMarkets{
+					types.NewMoneyMarket("ukava",
+						types.NewBorrowLimit(false, sdk.NewDec(100000000*KAVA_CF), sdk.MustNewDecFromStr("0.8")), // Borrow Limit
+						"kava:usd",          // Market ID
+						sdk.NewInt(KAVA_CF), // Conversion Factor
+						tc.args.interestRateModel,
+						tc.args.reserveFactor), // Reserve Factor
+				},
+			), types.DefaultPreviousBlockTime, types.DefaultDistributionTimes)
+
+			// Pricefeed module genesis state
+			pricefeedGS := pricefeed.GenesisState{
+				Params: pricefeed.Params{
+					Markets: []pricefeed.Market{
+						{MarketID: "kava:usd", BaseAsset: "kava", QuoteAsset: "usd", Oracles: []sdk.AccAddress{}, Active: true},
+					},
+				},
+				PostedPrices: []pricefeed.PostedPrice{
+					{
+						MarketID:      "kava:usd",
+						OracleAddress: sdk.AccAddress{},
+						Price:         sdk.MustNewDecFromStr("2.00"),
+						Expiry:        time.Now().Add(100 * time.Hour),
+					},
+				},
+			}
+
+			// Initialize test application
+			tApp.InitializeFromGenesisStates(authGS,
+				app.GenesisState{pricefeed.ModuleName: pricefeed.ModuleCdc.MustMarshalJSON(pricefeedGS)},
+				app.GenesisState{types.ModuleName: types.ModuleCdc.MustMarshalJSON(harvestGS)})
+
+			// Mint coins to Harvest module account
+			supplyKeeper := tApp.GetSupplyKeeper()
+			supplyKeeper.MintCoins(ctx, types.ModuleAccountName, tc.args.initialModuleCoins)
+
+			keeper := tApp.GetHarvestKeeper()
+			suite.app = tApp
+			suite.ctx = ctx
+			suite.keeper = keeper
+
+			var err error
+
+			// Run begin blocker and store initial block time
+			harvest.BeginBlocker(suite.ctx, suite.keeper)
+
+			// Deposit 2x as many coins for each coin we intend to borrow
+			for _, coin := range tc.args.borrowCoins {
+				err = suite.keeper.Deposit(suite.ctx, tc.args.user, sdk.NewCoin(coin.Denom, coin.Amount.Mul(sdk.NewInt(2))))
+				suite.Require().NoError(err)
+			}
+
+			// Borrow coins
+			err = suite.keeper.Borrow(suite.ctx, tc.args.user, tc.args.borrowCoins)
+			suite.Require().NoError(err)
+
+			// Check that the initial module-level borrow balance is correct and store it
+			initialBorrowedCoins, _ := suite.keeper.GetBorrowedCoins(suite.ctx)
+			suite.Require().Equal(tc.args.borrowCoins, initialBorrowedCoins)
+
+			// Check interest levels for each snapshot
+			prevCtx := suite.ctx
+			for _, snapshot := range tc.args.expectedInterestSnaphots {
+				// ---------------------------- Calculate expected interest ----------------------------
+				// 1. Get cash, borrows, reserves, and borrow index
+				cashPrior := suite.getModuleAccountAtCtx(types.ModuleName, prevCtx).GetCoins().AmountOf(tc.args.borrowCoinDenom)
+
+				borrowCoinsPrior, borrowCoinsPriorFound := suite.keeper.GetBorrowedCoins(prevCtx)
+				suite.Require().True(borrowCoinsPriorFound)
+				borrowCoinPriorAmount := borrowCoinsPrior.AmountOf(tc.args.borrowCoinDenom)
+
+				reservesPrior, foundReservesPrior := suite.keeper.GetTotalReserves(prevCtx, tc.args.borrowCoinDenom)
+				if !foundReservesPrior {
+					reservesPrior = sdk.NewCoin(tc.args.borrowCoinDenom, sdk.ZeroInt())
+				}
+
+				borrowIndexPrior, foundBorrowIndexPrior := suite.keeper.GetBorrowIndex(prevCtx, tc.args.borrowCoinDenom)
+				suite.Require().True(foundBorrowIndexPrior)
+
+				// 2. Calculate expected interest owed
+				borrowRateApy, err := harvest.CalculateBorrowRate(tc.args.interestRateModel, sdk.NewDecFromInt(cashPrior), sdk.NewDecFromInt(borrowCoinPriorAmount), sdk.NewDecFromInt(reservesPrior.Amount))
+				suite.Require().NoError(err)
+
+				// Convert from APY to SPY, expressed as (1 + borrow rate)
+				borrowRateSpy, err := harvest.APYToSPY(sdk.OneDec().Add(borrowRateApy))
+				suite.Require().NoError(err)
+
+				interestFactor := harvest.CalculateInterestFactor(borrowRateSpy, sdk.NewInt(snapshot.elapsedTime))
+				expectedInterest := (interestFactor.Mul(sdk.NewDecFromInt(borrowCoinPriorAmount)).TruncateInt()).Sub(borrowCoinPriorAmount)
+				expectedReserves := reservesPrior.Add(sdk.NewCoin(tc.args.borrowCoinDenom, sdk.NewDecFromInt(expectedInterest).Mul(tc.args.reserveFactor).TruncateInt()))
+				expectedBorrowIndex := borrowIndexPrior.Mul(interestFactor)
+				// -------------------------------------------------------------------------------------
+
+				// Set up snapshot chain context and run begin blocker
+				runAtTime := time.Unix(prevCtx.BlockTime().Unix()+(snapshot.elapsedTime), 0)
+				snapshotCtx := prevCtx.WithBlockTime(runAtTime)
+				harvest.BeginBlocker(snapshotCtx, suite.keeper)
+
+				// Check that the total amount of borrowed coins has increased by expected interest amount
+				expectedBorrowedCoins := borrowCoinsPrior.AmountOf(tc.args.borrowCoinDenom).Add(expectedInterest)
+				currBorrowedCoins, _ := suite.keeper.GetBorrowedCoins(snapshotCtx)
+				suite.Require().Equal(expectedBorrowedCoins, currBorrowedCoins.AmountOf(tc.args.borrowCoinDenom))
+
+				// Check that the total reserves have changed as expected
+				currTotalReserves, _ := suite.keeper.GetTotalReserves(snapshotCtx, tc.args.borrowCoinDenom)
+				suite.Require().Equal(expectedReserves, currTotalReserves)
+
+				// Check that the borrow index has increased as expected
+				currIndexPrior, _ := suite.keeper.GetBorrowIndex(snapshotCtx, tc.args.borrowCoinDenom)
+				suite.Require().Equal(expectedBorrowIndex, currIndexPrior)
+
+				// After borrowing again user's borrow balance should have any outstanding interest applied
+				if snapshot.shouldBorrow {
+					borrowCoinsBefore, _ := suite.keeper.GetBorrow(snapshotCtx, tc.args.user)
+					expectedInterestCoins := sdk.NewCoin(tc.args.borrowCoinDenom, expectedInterest)
+					expectedBorrowCoinsAfter := borrowCoinsBefore.Amount.Add(snapshot.borrowCoin).Add(expectedInterestCoins)
+
+					err = suite.keeper.Borrow(snapshotCtx, tc.args.user, sdk.NewCoins(snapshot.borrowCoin))
+					suite.Require().NoError(err)
+
+					borrowCoinsAfter, _ := suite.keeper.GetBorrow(snapshotCtx, tc.args.user)
+					suite.Require().Equal(expectedBorrowCoinsAfter, borrowCoinsAfter.Amount)
+				}
+				// Update previous context to this snapshot's context, segmenting time periods between snapshots
+				prevCtx = snapshotCtx
+			}
+		})
+	}
+}
+
+func TestInterestTestSuite(t *testing.T) {
+	suite.Run(t, new(InterestTestSuite))
+}
--- a/x/harvest/keeper/keeper.go
+++ b/x/harvest/keeper/keeper.go
@ -256,42 +256,99 @@ func (k Keeper) GetBorrowedCoins(ctx sdk.Context) (sdk.Coins, bool) {
 	return borrowedCoins, true
 }

-// GetInterestRateModel returns an interest rate model from the store for a denom
-func (k Keeper) GetInterestRateModel(ctx sdk.Context, denom string) (types.InterestRateModel, bool) {
-	store := prefix.NewStore(ctx.KVStore(k.key), types.InterestRateModelsPrefix)
+// GetMoneyMarket returns a money market from the store for a denom
+func (k Keeper) GetMoneyMarket(ctx sdk.Context, denom string) (types.MoneyMarket, bool) {
+	store := prefix.NewStore(ctx.KVStore(k.key), types.MoneyMarketsPrefix)
 	bz := store.Get([]byte(denom))
 	if bz == nil {
-		return types.InterestRateModel{}, false
+		return types.MoneyMarket{}, false
 	}
-	var interestRateModel types.InterestRateModel
-	k.cdc.MustUnmarshalBinaryBare(bz, &interestRateModel)
-	return interestRateModel, true
+	var moneyMarket types.MoneyMarket
+	k.cdc.MustUnmarshalBinaryBare(bz, &moneyMarket)
+	return moneyMarket, true
 }

-// SetInterestRateModel sets an interest rate model in the store for a denom
-func (k Keeper) SetInterestRateModel(ctx sdk.Context, denom string, interestRateModel types.InterestRateModel) {
-	store := prefix.NewStore(ctx.KVStore(k.key), types.InterestRateModelsPrefix)
-	bz := k.cdc.MustMarshalBinaryBare(interestRateModel)
+// SetMoneyMarket sets a money market in the store for a denom
+func (k Keeper) SetMoneyMarket(ctx sdk.Context, denom string, moneyMarket types.MoneyMarket) {
+	store := prefix.NewStore(ctx.KVStore(k.key), types.MoneyMarketsPrefix)
+	bz := k.cdc.MustMarshalBinaryBare(moneyMarket)
 	store.Set([]byte(denom), bz)
 }

-// DeleteInterestRateModel deletes an interest rate model from the store
-func (k Keeper) DeleteInterestRateModel(ctx sdk.Context, denom string) {
-	store := prefix.NewStore(ctx.KVStore(k.key), types.InterestRateModelsPrefix)
+// DeleteMoneyMarket deletes a money market from the store
+func (k Keeper) DeleteMoneyMarket(ctx sdk.Context, denom string) {
+	store := prefix.NewStore(ctx.KVStore(k.key), types.MoneyMarketsPrefix)
 	store.Delete([]byte(denom))
 }

-// IterateInterestRateModels iterates over all interest rate model objects in the store and performs a callback function
-// 		that returns both the interest rate model value and the key it's stored under
-func (k Keeper) IterateInterestRateModels(ctx sdk.Context, cb func(denom string, interestRateModel types.InterestRateModel) (stop bool)) {
-	store := prefix.NewStore(ctx.KVStore(k.key), types.InterestRateModelsPrefix)
+// IterateMoneyMarkets iterates over all money markets objects in the store and performs a callback function
+// 		that returns both the money market and the key (denom) it's stored under
+func (k Keeper) IterateMoneyMarkets(ctx sdk.Context, cb func(denom string, moneyMarket types.MoneyMarket) (stop bool)) {
+	store := prefix.NewStore(ctx.KVStore(k.key), types.MoneyMarketsPrefix)
 	iterator := sdk.KVStorePrefixIterator(store, []byte{})
 	defer iterator.Close()
 	for ; iterator.Valid(); iterator.Next() {
-		var interestRateModel types.InterestRateModel
-		k.cdc.MustUnmarshalBinaryBare(iterator.Value(), &interestRateModel)
-		if cb(string(iterator.Key()), interestRateModel) {
+		var moneyMarket types.MoneyMarket
+		k.cdc.MustUnmarshalBinaryBare(iterator.Value(), &moneyMarket)
+		if cb(string(iterator.Key()), moneyMarket) {
 			break
 		}
 	}
 }
+
+// GetPreviousAccrualTime returns the last time an individual market accrued interest
+func (k Keeper) GetPreviousAccrualTime(ctx sdk.Context, denom string) (time.Time, bool) {
+	store := prefix.NewStore(ctx.KVStore(k.key), types.PreviousAccrualTimePrefix)
+	bz := store.Get([]byte(denom))
+	if bz == nil {
+		return time.Time{}, false
+	}
+	var previousAccrualTime time.Time
+	k.cdc.MustUnmarshalBinaryBare(bz, &previousAccrualTime)
+	return previousAccrualTime, true
+}
+
+// SetPreviousAccrualTime sets the most recent accrual time for a particular market
+func (k Keeper) SetPreviousAccrualTime(ctx sdk.Context, denom string, previousAccrualTime time.Time) {
+	store := prefix.NewStore(ctx.KVStore(k.key), types.PreviousAccrualTimePrefix)
+	bz := k.cdc.MustMarshalBinaryBare(previousAccrualTime)
+	store.Set([]byte(denom), bz)
+}
+
+// GetTotalReserves returns the total reserves for an individual market
+func (k Keeper) GetTotalReserves(ctx sdk.Context, denom string) (sdk.Coin, bool) {
+	store := prefix.NewStore(ctx.KVStore(k.key), types.TotalReservesPrefix)
+	bz := store.Get([]byte(denom))
+	if bz == nil {
+		return sdk.Coin{}, false
+	}
+	var totalReserves sdk.Coin
+	k.cdc.MustUnmarshalBinaryBare(bz, &totalReserves)
+	return totalReserves, true
+}
+
+// SetTotalReserves sets the total reserves for an individual market
+func (k Keeper) SetTotalReserves(ctx sdk.Context, denom string, coin sdk.Coin) {
+	store := prefix.NewStore(ctx.KVStore(k.key), types.TotalReservesPrefix)
+	bz := k.cdc.MustMarshalBinaryBare(coin)
+	store.Set([]byte(denom), bz)
+}
+
+// GetBorrowIndex returns the current borrow index for an individual market
+func (k Keeper) GetBorrowIndex(ctx sdk.Context, denom string) (sdk.Dec, bool) {
+	store := prefix.NewStore(ctx.KVStore(k.key), types.BorrowIndexPrefix)
+	bz := store.Get([]byte(denom))
+	if bz == nil {
+		return sdk.ZeroDec(), false
+	}
+	var borrowIndex sdk.Dec
+	k.cdc.MustUnmarshalBinaryBare(bz, &borrowIndex)
+	return borrowIndex, true
+}
+
+// SetBorrowIndex sets the current borrow index for an individual market
+func (k Keeper) SetBorrowIndex(ctx sdk.Context, denom string, borrowIndex sdk.Dec) {
+	store := prefix.NewStore(ctx.KVStore(k.key), types.BorrowIndexPrefix)
+	bz := k.cdc.MustMarshalBinaryBare(borrowIndex)
+	store.Set([]byte(denom), bz)
+}
--- a/x/harvest/keeper/keeper_test.go
+++ b/x/harvest/keeper/keeper_test.go
@ -21,7 +21,6 @@ import (
 // Test suite used for all keeper tests
 type KeeperTestSuite struct {
 	suite.Suite
-
 	keeper keeper.Keeper
 	app    app.TestApp
 	ctx    sdk.Context
@ -157,45 +156,52 @@ func (suite *KeeperTestSuite) TestGetSetDeleteClaim() {
 func (suite *KeeperTestSuite) TestGetSetDeleteInterestRateModel() {
 	denom := "test"
 	model := types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))
+	borrowLimit := types.NewBorrowLimit(false, sdk.MustNewDecFromStr("0.2"), sdk.MustNewDecFromStr("0.5"))
+	moneyMarket := types.NewMoneyMarket(denom, borrowLimit, denom+":usd", sdk.NewInt(1000000), model, sdk.MustNewDecFromStr("0.05"))

-	_, f := suite.keeper.GetInterestRateModel(suite.ctx, denom)
+	_, f := suite.keeper.GetMoneyMarket(suite.ctx, denom)
 	suite.Require().False(f)

-	suite.keeper.SetInterestRateModel(suite.ctx, denom, model)
+	suite.keeper.SetMoneyMarket(suite.ctx, denom, moneyMarket)

-	testInterestRateModel, f := suite.keeper.GetInterestRateModel(suite.ctx, denom)
+	testMoneyMarket, f := suite.keeper.GetMoneyMarket(suite.ctx, denom)
 	suite.Require().True(f)
-	suite.Require().Equal(model, testInterestRateModel)
+	suite.Require().Equal(moneyMarket, testMoneyMarket)

-	suite.Require().NotPanics(func() { suite.keeper.DeleteInterestRateModel(suite.ctx, denom) })
+	suite.Require().NotPanics(func() { suite.keeper.DeleteMoneyMarket(suite.ctx, denom) })

-	_, f = suite.keeper.GetInterestRateModel(suite.ctx, denom)
+	_, f = suite.keeper.GetMoneyMarket(suite.ctx, denom)
 	suite.Require().False(f)
-
 }

 func (suite *KeeperTestSuite) TestIterateInterestRateModels() {
 	testDenom := "test"
-	var setModels types.InterestRateModels
+	var setMMs types.MoneyMarkets
 	var setDenoms []string
 	for i := 0; i < 5; i++ {
+		// Initialize a new money market
 		denom := testDenom + strconv.Itoa(i)
 		model := types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))
-		suite.Require().NotPanics(func() { suite.keeper.SetInterestRateModel(suite.ctx, denom, model) })
+		borrowLimit := types.NewBorrowLimit(false, sdk.MustNewDecFromStr("0.2"), sdk.MustNewDecFromStr("0.5"))
+		moneyMarket := types.NewMoneyMarket(denom, borrowLimit, denom+":usd", sdk.NewInt(1000000), model, sdk.MustNewDecFromStr("0.05"))
+
+		// Store money market in the module's store
+		suite.Require().NotPanics(func() { suite.keeper.SetMoneyMarket(suite.ctx, denom, moneyMarket) })
+
 		// Save the denom and model
 		setDenoms = append(setDenoms, denom)
-		setModels = append(setModels, model)
+		setMMs = append(setMMs, moneyMarket)
 	}

-	var seenModels types.InterestRateModels
+	var seenMMs types.MoneyMarkets
 	var seenDenoms []string
-	suite.keeper.IterateInterestRateModels(suite.ctx, func(denom string, i types.InterestRateModel) bool {
+	suite.keeper.IterateMoneyMarkets(suite.ctx, func(denom string, i types.MoneyMarket) bool {
 		seenDenoms = append(seenDenoms, denom)
-		seenModels = append(seenModels, i)
+		seenMMs = append(seenMMs, i)
 		return false
 	})

-	suite.Require().Equal(setModels, seenModels)
+	suite.Require().Equal(setMMs, seenMMs)
 	suite.Require().Equal(setDenoms, seenDenoms)
 }

@ -204,11 +210,21 @@ func (suite *KeeperTestSuite) getAccount(addr sdk.AccAddress) authexported.Accou
 	return ak.GetAccount(suite.ctx, addr)
 }

+func (suite *KeeperTestSuite) getAccountAtCtx(addr sdk.AccAddress, ctx sdk.Context) authexported.Account {
+	ak := suite.app.GetAccountKeeper()
+	return ak.GetAccount(ctx, addr)
+}
+
 func (suite *KeeperTestSuite) getModuleAccount(name string) supplyexported.ModuleAccountI {
 	sk := suite.app.GetSupplyKeeper()
 	return sk.GetModuleAccount(suite.ctx, name)
 }

+func (suite *KeeperTestSuite) getModuleAccountAtCtx(name string, ctx sdk.Context) supplyexported.ModuleAccountI {
+	sk := suite.app.GetSupplyKeeper()
+	return sk.GetModuleAccount(ctx, name)
+}
+
 func TestKeeperTestSuite(t *testing.T) {
 	suite.Run(t, new(KeeperTestSuite))
 }
--- a/x/harvest/keeper/params.go
+++ b/x/harvest/keeper/params.go
@ -40,8 +40,8 @@ func (k Keeper) GetDelegatorSchedule(ctx sdk.Context, denom string) (types.Deleg
 	return types.DelegatorDistributionSchedule{}, false
 }

-// GetMoneyMarket returns the corresponding Money Market param for a specific denom
-func (k Keeper) GetMoneyMarket(ctx sdk.Context, denom string) (types.MoneyMarket, bool) {
+// GetMoneyMarketParam returns the corresponding Money Market param for a specific denom
+func (k Keeper) GetMoneyMarketParam(ctx sdk.Context, denom string) (types.MoneyMarket, bool) {
 	params := k.GetParams(ctx)
 	for _, mm := range params.MoneyMarkets {
 		if mm.Denom == denom {
--- a/x/harvest/keeper/rewards_test.go
+++ b/x/harvest/keeper/rewards_test.go
@ -75,8 +75,8 @@ func (suite *KeeperTestSuite) TestApplyDepositRewards() {
 				),
 				},
 				types.MoneyMarkets{
-					types.NewMoneyMarket("usdx", false, sdk.NewDec(1000000000000000), loanToValue, "usdx:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
-					types.NewMoneyMarket("ukava", false, sdk.NewDec(1000000000000000), loanToValue, "kava:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
+					types.NewMoneyMarket("usdx", types.NewBorrowLimit(false, sdk.NewDec(1000000000000000), loanToValue), "usdx:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
+					types.NewMoneyMarket("ukava", types.NewBorrowLimit(false, sdk.NewDec(1000000000000000), loanToValue), "kava:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
 				},
 			), tc.args.previousBlockTime, types.DefaultDistributionTimes)
 			tApp.InitializeFromGenesisStates(app.GenesisState{types.ModuleName: types.ModuleCdc.MustMarshalJSON(harvestGS)})
@ -443,8 +443,8 @@ func harvestGenesisState(rewardRate sdk.Coin) app.GenesisState {
 				),
 			},
 			types.MoneyMarkets{
-				types.NewMoneyMarket("usdx", false, sdk.NewDec(1000000000000000), loanToValue, "usdx:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
-				types.NewMoneyMarket("ukava", false, sdk.NewDec(1000000000000000), loanToValue, "kava:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
+				types.NewMoneyMarket("usdx", types.NewBorrowLimit(false, sdk.NewDec(1000000000000000), loanToValue), "usdx:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
+				types.NewMoneyMarket("ukava", types.NewBorrowLimit(false, sdk.NewDec(1000000000000000), loanToValue), "kava:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
 			},
 		),
 		types.DefaultPreviousBlockTime,
--- a/x/harvest/keeper/timelock_test.go
+++ b/x/harvest/keeper/timelock_test.go
@ -291,8 +291,8 @@ func (suite *KeeperTestSuite) TestSendTimeLockedCoinsToAccount() {
 				),
 				},
 				types.MoneyMarkets{
-					types.NewMoneyMarket("usdx", false, sdk.NewDec(1000000000000000), loanToValue, "usdx:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
-					types.NewMoneyMarket("ukava", false, sdk.NewDec(1000000000000000), loanToValue, "kava:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10"))),
+					types.NewMoneyMarket("usdx", types.NewBorrowLimit(false, sdk.NewDec(1000000000000000), loanToValue), "usdx:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
+					types.NewMoneyMarket("ukava", types.NewBorrowLimit(false, sdk.NewDec(1000000000000000), loanToValue), "kava:usd", sdk.NewInt(1000000), types.NewInterestRateModel(sdk.MustNewDecFromStr("0.05"), sdk.MustNewDecFromStr("2"), sdk.MustNewDecFromStr("0.8"), sdk.MustNewDecFromStr("10")), sdk.MustNewDecFromStr("0.05")),
 				},
 			), types.DefaultPreviousBlockTime, types.DefaultDistributionTimes)
 			tApp.InitializeFromGenesisStates(authGS, app.GenesisState{types.ModuleName: types.ModuleCdc.MustMarshalJSON(harvestGS)})
--- a/x/harvest/types/borrow.go
+++ b/x/harvest/types/borrow.go
@ -4,16 +4,35 @@ import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
 )

+// BorrowIndexItem defines an individual borrow index
+type BorrowIndexItem struct {
+	Denom string  `json:"denom" yaml:"denom"`
+	Value sdk.Dec `json:"value" yaml:"value"`
+}
+
+// NewBorrowIndexItem returns a new BorrowIndexItem instance
+func NewBorrowIndexItem(denom string, value sdk.Dec) BorrowIndexItem {
+	return BorrowIndexItem{
+		Denom: denom,
+		Value: value,
+	}
+}
+
+// BorrowIndexes is a slice of BorrowIndexItem, because Amino won't marshal maps
+type BorrowIndexes []BorrowIndexItem
+
 // Borrow defines an amount of coins borrowed from a harvest module account
 type Borrow struct {
 	Borrower sdk.AccAddress `json:"borrower" yaml:"borrower"`
 	Amount   sdk.Coins      `json:"amount" yaml:"amount"`
+	Index    BorrowIndexes  `json:"index" yaml:"index"`
 }

 // NewBorrow returns a new Borrow instance
-func NewBorrow(borrower sdk.AccAddress, amount sdk.Coins) Borrow {
+func NewBorrow(borrower sdk.AccAddress, amount sdk.Coins, index BorrowIndexes) Borrow {
 	return Borrow{
 		Borrower: borrower,
 		Amount:   amount,
+		Index:    index,
 	}
 }
--- a/x/harvest/types/errors.go
+++ b/x/harvest/types/errors.go
@ -55,4 +55,8 @@ var (
 	ErrGreaterThanAssetBorrowLimit = sdkerrors.Register(ModuleName, 24, "fails global asset borrow limit validation")
 	// ErrBorrowEmptyCoins error for when you cannot borrow empty coins
 	ErrBorrowEmptyCoins = sdkerrors.Register(ModuleName, 25, "cannot borrow zero coins")
+	// ErrPreviousAccrualTimeNotFound error for no previous accrual time found in store
+	ErrPreviousAccrualTimeNotFound = sdkerrors.Register(ModuleName, 26, "no previous accrual time found")
+	// ErrBorrowNotFound error for when borrow not found in store
+	ErrBorrowNotFound = sdkerrors.Register(ModuleName, 27, "no borrow found")
 )
--- a/x/harvest/types/keys.go
+++ b/x/harvest/types/keys.go
@ -37,7 +37,10 @@ var (
 	ClaimsKeyPrefix                   = []byte{0x04}
 	BorrowsKeyPrefix                  = []byte{0x05}
 	BorrowedCoinsPrefix               = []byte{0x06}
-	InterestRateModelsPrefix          = []byte{0x07}
+	MoneyMarketsPrefix                = []byte{0x07}
+	PreviousAccrualTimePrefix         = []byte{0x08} // denom -> time
+	TotalReservesPrefix               = []byte{0x09} // denom -> sdk.Coin
+	BorrowIndexPrefix                 = []byte{0x10} // denom -> sdk.Dec
 	sep                               = []byte(":")
 )

--- a/x/harvest/types/params.go
+++ b/x/harvest/types/params.go
@ -251,6 +251,20 @@ func (bl BorrowLimit) Validate() error {
 	return nil
 }

+// Equal returns a boolean indicating if an BorrowLimit is equal to another BorrowLimit
+func (bl BorrowLimit) Equal(blCompareTo BorrowLimit) bool {
+	if bl.HasMaxLimit != blCompareTo.HasMaxLimit {
+		return false
+	}
+	if !bl.MaximumLimit.Equal(blCompareTo.MaximumLimit) {
+		return false
+	}
+	if !bl.LoanToValue.Equal(blCompareTo.LoanToValue) {
+		return false
+	}
+	return true
+}
+
 // MoneyMarket is a money market for an individual asset
 type MoneyMarket struct {
 	Denom             string            `json:"denom" yaml:"denom"`
@ -258,17 +272,19 @@ type MoneyMarket struct {
 	SpotMarketID      string            `json:"spot_market_id" yaml:"spot_market_id"`
 	ConversionFactor  sdk.Int           `json:"conversion_factor" yaml:"conversion_factor"`
 	InterestRateModel InterestRateModel `json:"interest_rate_model" yaml:"interest_rate_model"`
+	ReserveFactor     sdk.Dec           `json:"reserve_factor" yaml:"reserve_factor"`
 }

 // NewMoneyMarket returns a new MoneyMarket
-func NewMoneyMarket(denom string, hasMaxLimit bool, maximumLimit, loanToValue sdk.Dec,
-	spotMarketID string, conversionFactor sdk.Int, interestRateModel InterestRateModel) MoneyMarket {
+func NewMoneyMarket(denom string, borrowLimit BorrowLimit, spotMarketID string,
+	conversionFactor sdk.Int, interestRateModel InterestRateModel, reserveFactor sdk.Dec) MoneyMarket {
 	return MoneyMarket{
 		Denom:             denom,
-		BorrowLimit:       NewBorrowLimit(hasMaxLimit, maximumLimit, loanToValue),
+		BorrowLimit:       borrowLimit,
 		SpotMarketID:      spotMarketID,
 		ConversionFactor:  conversionFactor,
 		InterestRateModel: interestRateModel,
+		ReserveFactor:     reserveFactor,
 	}
 }

@ -285,9 +301,36 @@ func (mm MoneyMarket) Validate() error {
 	if err := mm.InterestRateModel.Validate(); err != nil {
 		return err
 	}
+
+	if mm.ReserveFactor.IsNegative() || mm.ReserveFactor.GT(sdk.OneDec()) {
+		return fmt.Errorf("Reserve factor must be between 0.0-1.0")
+	}
 	return nil
 }

+// Equal returns a boolean indicating if a MoneyMarket is equal to another MoneyMarket
+func (mm MoneyMarket) Equal(mmCompareTo MoneyMarket) bool {
+	if mm.Denom != mmCompareTo.Denom {
+		return false
+	}
+	if !mm.BorrowLimit.Equal(mmCompareTo.BorrowLimit) {
+		return false
+	}
+	if mm.SpotMarketID != mmCompareTo.SpotMarketID {
+		return false
+	}
+	if !mm.ConversionFactor.Equal(mmCompareTo.ConversionFactor) {
+		return false
+	}
+	if !mm.InterestRateModel.Equal(mmCompareTo.InterestRateModel) {
+		return false
+	}
+	if !mm.ReserveFactor.Equal(mmCompareTo.ReserveFactor) {
+		return false
+	}
+	return true
+}
+
 // MoneyMarkets slice of MoneyMarket
 type MoneyMarkets []MoneyMarket

@ -341,17 +384,17 @@ func (irm InterestRateModel) Validate() error {
 }

 // Equal returns a boolean indicating if an InterestRateModel is equal to another InterestRateModel
-func (irm InterestRateModel) Equal(comparisonIRM InterestRateModel) bool {
-	if !irm.BaseRateAPY.Equal(comparisonIRM.BaseRateAPY) {
+func (irm InterestRateModel) Equal(irmCompareTo InterestRateModel) bool {
+	if !irm.BaseRateAPY.Equal(irmCompareTo.BaseRateAPY) {
 		return false
 	}
-	if !irm.BaseMultiplier.Equal(comparisonIRM.BaseMultiplier) {
+	if !irm.BaseMultiplier.Equal(irmCompareTo.BaseMultiplier) {
 		return false
 	}
-	if !irm.Kink.Equal(comparisonIRM.Kink) {
+	if !irm.Kink.Equal(irmCompareTo.Kink) {
 		return false
 	}
-	if !irm.JumpMultiplier.Equal(comparisonIRM.JumpMultiplier) {
+	if !irm.JumpMultiplier.Equal(irmCompareTo.JumpMultiplier) {
 		return false
 	}
 	return true