Summary

The RAACMinter contract contains a critical cross-chain incompatibility by hardcoding BLOCKS_PER_DAY = 7200 (12-second Ethereum blocks). This creates severe economic miscalculations when deployed on chains with different block times, leading to either excessive inflation or insufficient rewards depending on network characteristics.

As stated in the scope of this audit

All EVM Compatible, Curve ecosystem ready (cross curve via EYWA).

Vulnerability Details

Faulty Assumption

The contract assumes fixed Ethereum block times:

And later in the constructor:

This value directly impacts all emission calculations:

Chain-Specific Impacts

Impact

1. Hyperinflation Risk:

   • 4700% over-emission on high-throughput chains like Arbitrum

   • Token supply growth exceeds whitepaper projections

   • Potential collapse of RAAC valuation

2. Protocol Instability:

   • Stability Pool rewards become economically unsustainable

   • Borrowing/lending incentives distorted across chains

3. Cross-Chain Deployment Failure:

   • Makes protocol non-portable to L2s/alternative L1s

   • Limits protocol's scalability and adoption potential

Tools Used

Manual Review

Proof of Concept

Ethereum Mainnet (Normal Behavior)

Polygon PoS Chain (Dangerous Behavior)

Resulting Economic Impact

1. 30-Day Cumulative Emissions:

   • Intended: 30,000 RAAC

   • Actual Polygon: 180,000 RAAC (+600%)

   • Actual Arbitrum: 1,440,000 RAAC (+4,700%)

2. Stability Pool APR Distortion:

   • $10M TVL @ intended 1,000 RAAC/day: 3.65% APR

   • $10M TVL @ Polygon 6,000 RAAC/day: 21.9% APR

   • Creates unsustainable yield expectations

Recommendations

1. Time-Based Calculation

1. Chain-Aware Configuration