Concerning Airdrop Episode II

Lemonders, due to mining rate adjust, Airdrop Episode II ended prior to the date planned.

We would like to shed the light on what happened during Episode II:

1 Due to high mining efficiency of OKB, USDT, ETH, BTC, many lemonders deposited large sum of OKT to borrow above tokens without repaying, which caused withdraw difficulty.

2 Due to huge difference of circulation between test tokens, mining rate varied vastly. Thus, some “over enthusiastic” Lemonders insanely swapped large sum of OKB and other test tokens with “incredibly high price”. That’s the reason we urgently adjusted the mining rate.

3 To a preciseness concern, we decided to simulate the real loan market and utilized oracle to get price from DEX on OKExChain test net. But as test tokens don’t have actual values, prices of which could have severe fluctuation. Liquidation was then performed for revolving credits.

Please note, the main reason causing situations above is unworthiness of test tokens on test net. The only factor people would consider is the efficiency while not the price.

Rest assured that Lemond’s contracts have linked lending rate up with funds utilization rate. Balancing would be automatically performed between supply and demand by interest rate model.

Due to tokens on mainnet have real values and circulations, extreme cases happened on test net won’t take place on mainnet.

Solutions concerning current situations:

1 Disable the “borrow”function of pools and provide sufficient test tokens into pools for those who have withdraw difficulties to get tokens back.

2 To those whose test assets have been liquidated, please fulfill below sheet before 12.00 UTC, Apr 27. We will transfer said tokens upon verification.

Lastly but importantly, please do be cautious when borrowing assets on mainnet to avoid being liquidated. To this aspect, Airdrop Episode II is a Risk Education! Juicy one by the way:)

a Juicy DeFi Protocol