🚨Important Update!
You must have noticed the inaccurate APRs on the Lend and Borrow dApps. We were aware of this issue and have been testing the smart contracts to identify the root cause behind it. Ever since the bug was identified, all hands have been on deck to address it.
Today, we're here to brief the community on the bug and its after-effect.We must go back a bit in time to understand the bug and what after-effects it caused:⚫️ The Lend/Borrow dApp was launched in Aug 2021
⚫️ The price feeds for BUSD/BNB provided by Chainlink and that of NBU/GBU provided by Nimbus were prematurely updated to the production, which then caused the bug, and the error remained in the system for 8 hours. All four pools, including BUSD, BNB, NBU, and GNBU were affected by the bug.
⚫️ Due to this oversight, the loan to value ratio was such that it was possible to take out a loan of 100 BNB using less than 1 GNBU as collateral. That paints a picture of the eventual imbalance between the amount borrowed & the amount supplied.
⚫️ Back in Sept 2021, when the system accepted the loan (with the wrong collateral), the loan was accepted for 90 days since that was the primary condition set by the user.
During the span of these 90 days, the system did not catch that there was a misalignment between loan and collateral. However, after the end of this time period, which was in Dec 2021, when the imbalance had escalated, the system began calculating inaccurate APRs. In Jan 2022, interest was accrued on these loans, leaving us where we are now.
As soon as we noticed the irregularities, we began working on the bug extensively and even adjusted the amount of liquidity in the Testnet. However, even a stimulated replenishment of the pool failed to correct the rates on the dApp. As of now, we've figured out the solution to this bug, which is further elaborated as:
✅ For the rewards incorrectly accrued due to the bug, we aim to construct a script to calculate the sum of those rewards that users of the Lend and Borrow dApps received less out of the total sum. Since the process is extensive and complex, the resolution time could be around 2 weeks, after which we’ll be back with more updates.
✅ We will temporarily suspend the Lend and Borrow dApps until the end of March. During this period, we'll fix the bug and reissue the smart contracts. We also have solid advisors with expertise in lending-borrowing, aiding alongside to expedite the process as much as possible.
✅ The Lend and Borrow dApps is one of the key underlying mechanisms of the Smart LP NFT. To ensure that the n-NFT related operations are not affected while we fix the bug, we're also exploring the feasibility of sending 30% of the supply to the most enterprising lending-borrowing platforms.
We admit that this event has caused unnecessary inconvenience to our users and could have been avoided. To help make it better, we're utilizing all resources to correct this event from its very root cause.
Thank you for your patience as we bring the order back to the platform and get back to you with more updates🙏
