diff --git a/contracts/BaseJumpRateModelV3.sol b/contracts/BaseJumpRateModelV3.sol
new file mode 100644
index 000000000..8b5adc25a
--- /dev/null
+++ b/contracts/BaseJumpRateModelV3.sol
@@ -0,0 +1,139 @@
+// SPDX-License-Identifier: BSD-3-Clause
+pragma solidity ^0.8.10;
+
+import "./InterestRateModel.sol";
+
+/**
+  * @title Logic for Compound's JumpRateModel Contract V2.
+  * @author Compound (modified by Dharma Labs, refactored by Arr00)
+  * @notice Version 2 modifies Version 1 by enabling updateable parameters.
+  */
+abstract contract BaseJumpRateModelV3 is InterestRateModel {
+    event NewInterestParams(uint baseRatePerBlock, uint multiplierPerBlock, uint jumpMultiplierPerBlock, uint kink);
+
+    uint256 private constant BASE = 1e18;
+
+    /**
+     * @notice The address of the owner, i.e. the Timelock contract, which can update parameters directly
+     */
+    address public owner;
+
+    /**
+     * @notice The approximate number of blocks per year that is assumed by the interest rate model
+     * @dev This was calculated accounting for 12-second block times
+     */
+    uint public constant blocksPerYear = 2629800;
+
+    /**
+     * @notice The multiplier of utilization rate that gives the slope of the interest rate
+     */
+    uint public multiplierPerBlock;
+
+    /**
+     * @notice The base interest rate which is the y-intercept when utilization rate is 0
+     */
+    uint public baseRatePerBlock;
+
+    /**
+     * @notice The multiplierPerBlock after hitting a specified utilization point
+     */
+    uint public jumpMultiplierPerBlock;
+
+    /**
+     * @notice The utilization point at which the jump multiplier is applied
+     */
+    uint public kink;
+
+    /**
+     * @notice Construct an interest rate model
+     * @param baseRatePerYear The approximate target base APR, as a mantissa (scaled by BASE)
+     * @param multiplierPerYear The rate of increase in interest rate wrt utilization (scaled by BASE)
+     * @param jumpMultiplierPerYear The multiplierPerBlock after hitting a specified utilization point
+     * @param kink_ The utilization point at which the jump multiplier is applied
+     * @param owner_ The address of the owner, i.e. the Timelock contract (which has the ability to update parameters directly)
+     */
+    constructor(uint baseRatePerYear, uint multiplierPerYear, uint jumpMultiplierPerYear, uint kink_, address owner_) internal {
+        owner = owner_;
+
+        updateJumpRateModelInternal(baseRatePerYear,  multiplierPerYear, jumpMultiplierPerYear, kink_);
+    }
+
+    /**
+     * @notice Update the parameters of the interest rate model (only callable by owner, i.e. Timelock)
+     * @param baseRatePerYear The approximate target base APR, as a mantissa (scaled by BASE)
+     * @param multiplierPerYear The rate of increase in interest rate wrt utilization (scaled by BASE)
+     * @param jumpMultiplierPerYear The multiplierPerBlock after hitting a specified utilization point
+     * @param kink_ The utilization point at which the jump multiplier is applied
+     */
+    function updateJumpRateModel(uint baseRatePerYear, uint multiplierPerYear, uint jumpMultiplierPerYear, uint kink_) virtual external {
+        require(msg.sender == owner, "only the owner may call this function.");
+
+        updateJumpRateModelInternal(baseRatePerYear, multiplierPerYear, jumpMultiplierPerYear, kink_);
+    }
+
+    /**
+     * @notice Calculates the utilization rate of the market: `borrows / (cash + borrows - reserves)`
+     * @param cash The amount of cash in the market
+     * @param borrows The amount of borrows in the market
+     * @param reserves The amount of reserves in the market (currently unused)
+     * @return The utilization rate as a mantissa between [0, BASE]
+     */
+    function utilizationRate(uint cash, uint borrows, uint reserves) public pure returns (uint) {
+        // Utilization rate is 0 when there are no borrows
+        if (borrows == 0) {
+            return 0;
+        }
+
+        return borrows * BASE / (cash + borrows - reserves);
+    }
+
+    /**
+     * @notice Calculates the current borrow rate per block, with the error code expected by the market
+     * @param cash The amount of cash in the market
+     * @param borrows The amount of borrows in the market
+     * @param reserves The amount of reserves in the market
+     * @return The borrow rate percentage per block as a mantissa (scaled by BASE)
+     */
+    function getBorrowRateInternal(uint cash, uint borrows, uint reserves) internal view returns (uint) {
+        uint util = utilizationRate(cash, borrows, reserves);
+
+        if (util <= kink) {
+            return ((util * multiplierPerBlock) / BASE) + baseRatePerBlock;
+        } else {
+            uint normalRate = ((kink * multiplierPerBlock) / BASE) + baseRatePerBlock;
+            uint excessUtil = util - kink;
+            return ((excessUtil * jumpMultiplierPerBlock) / BASE) + normalRate;
+        }
+    }
+
+    /**
+     * @notice Calculates the current supply rate per block
+     * @param cash The amount of cash in the market
+     * @param borrows The amount of borrows in the market
+     * @param reserves The amount of reserves in the market
+     * @param reserveFactorMantissa The current reserve factor for the market
+     * @return The supply rate percentage per block as a mantissa (scaled by BASE)
+     */
+    function getSupplyRate(uint cash, uint borrows, uint reserves, uint reserveFactorMantissa) virtual override public view returns (uint) {
+        uint oneMinusReserveFactor = BASE - reserveFactorMantissa;
+        uint borrowRate = getBorrowRateInternal(cash, borrows, reserves);
+        uint rateToPool = borrowRate * oneMinusReserveFactor / BASE;
+        return utilizationRate(cash, borrows, reserves) * rateToPool / BASE;
+    }
+
+    /**
+     * @notice Internal function to update the parameters of the interest rate model
+     * @param baseRatePerYear The approximate target base APR, as a mantissa (scaled by BASE)
+     * @param multiplierPerYear The rate of increase in interest rate wrt utilization (scaled by BASE)
+     * @param jumpMultiplierPerYear The multiplierPerBlock after hitting a specified utilization point
+     * @param kink_ The utilization point at which the jump multiplier is applied
+     */
+    function updateJumpRateModelInternal(uint baseRatePerYear, uint multiplierPerYear, uint jumpMultiplierPerYear, uint kink_) internal {
+        baseRatePerBlock = baseRatePerYear / blocksPerYear;
+        multiplierPerBlock = (multiplierPerYear * BASE) / (blocksPerYear * kink_);
+        jumpMultiplierPerBlock = jumpMultiplierPerYear / blocksPerYear;
+        kink = kink_;
+
+        emit NewInterestParams(baseRatePerBlock, multiplierPerBlock, jumpMultiplierPerBlock, kink);
+    }
+}
diff --git a/contracts/DAIInterestRateModelV4.sol b/contracts/DAIInterestRateModelV4.sol
index c275fd01d..4c93783da 100644
--- a/contracts/DAIInterestRateModelV4.sol
+++ b/contracts/DAIInterestRateModelV4.sol
@@ -1,6 +1,6 @@
 pragma solidity ^0.8.10;
 
-import "./JumpRateModelV2.sol";
+import "./JumpRateModelV3.sol";
 
 /**
   * @title Compound's DAIInterestRateModel Contract (version 4)
@@ -8,7 +8,7 @@ import "./JumpRateModelV2.sol";
   * @notice Version 4 modifies the number of seconds per block to 12,
   * and takes the stability fee of ETH-B as a reference.
   */
-contract DAIInterestRateModelV4 is JumpRateModelV2 {
+contract DAIInterestRateModelV4 is JumpRateModelV3 {
     uint256 private constant BASE = 1e18;
     uint256 private constant RAY_BASE = 1e27;
     uint256 private constant RAY_TO_BASE_SCALE = 1e9;