Community update — Actions taken

Last month(July 2019) saw a lot of fluctuation in prices, due to which loans and trades got liquidated in bulk in a very short span of time — due to stop loss or take profits.

This led to a few losses for lenders of BAT and REP, but taught us a lot of valuable lessons. That has been wholly captured in this article.

We have taken measures to reduce the probability of such a scenario to repeat and made our system much more robust to handle this. We have implemented the following:

1. An activity monitoring system: A service is now constantly monitoring the transactions being broadcasted by the relay addresses. If it finds any transaction that is pending for more than 3 minutes, it triggers an automatic rebroadcasting of the transaction with a higher gas value so that it gets picked up by the miners and does not clog the system. The system will keep re-broadcasting it with a higher (& higher) gas value for a max of 5 retries to prevent infinite cascade. This is currently live for trading account withdrawal transactions and has been rolled out to all other transaction types already.
2. More frequent liquidation retries: Failed transactions are now retried within 5 minutes instead of the earlier 30-minute interval. We are also in talks with Kyber to ensure that transactions do not fail even temporarily.
3. Max limit: The max amount for loans and margin trades has been reduced from 25 ETH to 15 ETH. This has been done to battle with slippage. We will increase this slowly for certain tokens as we partner with more DEXs with deeper liquidity. You can check the new limits in the FAQs.
4. Independent buffer values: Earlier, buffer values were system-wide. We have now introduced separate buffers on a per token level depending on the liquidity of tokens. We have also introduced different max limits allowed per trade order. You can check out the new buffer values in the FAQs.
5. FAQs updated: FAQs regarding a lot of questions that were asked during the last month and around the above issues have been updated. Please check out https://help.nuo.network/ for all answers.

We will soon be implementing the other action points as indicated in the previous article. But, as of now, please rest assured that the reserve pool is safe and is earning you good interest! We will also release(within 24 hours) a sheet which contains exact interests that our lenders have earned in the last 90 days in the top 5 tokens on Nuo!