Update on “The Merge”
During “The Merge” of Ethereum, OpenLeverage will not expect any disruptions to our lending, trading, or withdrawals and will continue to operate normally. Community members can continue lending and trading as usual.
Ethereum will move to Proof-of-Stake (PoS) in an event known as “The Merge.” This event is expected to begin sometime between 13 September 2022 to 15 September 2022.
After The Merge, the block time of the Ethereum mainnet will be changed from ~13 seconds to 12 seconds. Our interest rate model takes block time as a parameter for calculating interest, so if left unchecked, the interest rate will be increased to about 10% on the borrowing and lending annualized rate. The Core team will monitor and readjust these parameters on the protocol to reflect the changes as The Merge happens. Community members will not need to do anything and will be updated with the progress on Twitter.
For more information on The Merge, please read the announcement from the Ethereum Foundation.