Update made 20/01/22

Our calculations around the supply and borrow APR were based off a 6 Million blocks per year rate on Metis. However in the last few days Metis block rates have been increasing.

• Last 100k blocks = 2.92 seconds, meaning 9.6M blocks per year.
• Last 200k blocks = 3.27 seconds, meaning 10.7M blocks per year.

Metis block times are hard to estimate due to how new the chain is. Even Metis’ core team is not in a position to predict these and we have to go with best case estimates and adapt when that deviates.

The block time discrepancy has led to the borrowers paying a higher amount than what is estimated on the UI and lenders earning far more. The effect is more pronounced on the Netswap market which has a very high APR to start with.

We will recommend that borrowers monitor their position as standard practice as well as now in particular to ensure they are healthy and avoid liquidations risk.

We are implementing the following changes:

1. Reduce Agora emissions to 4 per block (2 to supply and 2 to borrow). This should account for the almost double block rate.
2. Change the interest rate models to reflect 12 Million blocks per year and update the lending markets to reflect them. We will also be offering a small bounty of vested Agora tokens to the user who reported this issue. It comes out of the 1% allocation set aside for marketing.

Note that 12 million blocks is slightly higher than the observed METIS block times. We are keeping it a bit higher to cover for any further speed up in Metis block rates in future. This however does mean that the Supply and Borrower APR that the users get will be marginally lower than what they see on the UI. Absolute amounts will still be correct.

Funds are safe and contracts are secure.