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Migration
Migration plan for Algofi V1 to Algofi V2.

Migration from V1 -> V2 Plan

Migrating liquidity from the V1 -> V2 will be incentivized carefully and deliberately over the coming months. At launch, there will be ~2 months left in the current Algorand Foundation governance period. As such, a large amount of ALGO collateral will be "locked" in the V1 protocol Algofi Vault until the next governance unlock in early October 2022. As such, it is important to prevent the fast migration of high borrow utilization assets such as ALGO (in the vanilla ALGO Market) and USDC. If this occurred, the borrow utilizations of these assets would increase, causing the borrow interest rate to rise rapidly. Ultimately, lenders would seize on the above-market rates but this would cause temporary discomfort for users which is not desired.
To this end, the protocol will distribute a small quantity of incentives to promote the use of the V2 at launch. This rewards will be drawn from the V1 incentives, new Aeneas programs, and any future rewards programs that will support the launch. This is designed to motivate the use of the V2 without causing an increase in borrow rates on the V1.
During the time leading up to the next governance unlock in October, incentives will be increased markedly to promote the migration of all assets from V1 -> V2. Users with vaulted ALGOs will be able to claim their governance rewards, then migrate ALGOs to their V2 vault. After, they'll be able to commit to the new governance period and use the V2 lending protocol as they might have been using the V1.

Rewards Migration Phase 1

As discussed in Migration from V1 -> V2 Plan rewards will be used to carefully incentivize migration of liquidity from V1 to V2. Phase 1 of the liquidity migration will consist of an Aeneas incentives migration from V1 to V2.
20% of the Aeneas ALGO rewards being distributed on the Algofi Lending V1 (ALGO, USDC, STBL, goBTC, and goETH markets) will be moved to support the launch of the V2. The reduction in V1 rewards will take place over 7 days from the launch of the V2 protocol on August 2nd, 2022. Aeneas ALGOs on the staking and farming pools will not be moved. It is expected arbitrage capital will bring the rewards APRs across protocols within a small band of each other over time.

Rewards Migration Phase 2

With the launch of STBL2 and its associated lending pool (STBL2-USDC), Aeneas incentives will be redirected help grow STBL2 liquidity in conjuction with the staged migration to the V2 protocol. 25% of the incentives being distributed on the Stability Peg Index, and STBL-USDT, STBL-ALGO, goBTC-STBL, and goETH-STBL farming contracts will be moved to incentivize the STBL2 and lending pool markets as well as forthcoming AMM pool launches. Moreover, the STBL ecosystem farms (XET-STBL, ZONE-STBL, DEFLY-STBL, and OPUL-STBL) have reached the end of their funding and will be decommissioned. On the other hand, the DEFLY -> DEFLY and OPUL -> OPUL pools will continue to run in partnership with Defly and Opulous.
These changes will be executed over the next 7 business days beginning on the launch of STBL2, August 19th, 2022.
We are incredibly excited about the launch of STBL2 today and the many releases we have planned over the coming weeks. The capital efficiency gains that STBL2 and lending pools will bring are part of what is going to make the next few months the best yet for Algorand DeFi.

Rewards Migration Phase 3

With the launch of the STBL2-ALGO lending pool, Aeneas incentives will be redirected to continue bootstrapping STBL2 liquidity. 25% of the incentives being deployed to the Stability Peg Index and STBL-USDT LP farm will be redirected to the v2 lending protocol and associated markets. Further, the GOMINT-STBL LP farm, launched in partnership with the Algomint team, will be deprecated.
These changes will be executed over the next 7 business days beginning with the launch of the STBL2-ALGO lending pool on September 1st, 2022.

Rewards Migration Phase 4

With the launch of the STBL2-goBTC and STBL2-goETH lending pools, Aeneas incentives will be redirected to continue bootstrapping STBL2 liquidity. 10% of the ALGO incentives being deployed across the v1 lending protocol will be redirected to the v2 lending protocol and associated markets. Further, 75% of the goBTC-STBL and goETH-STBL farming incentives will be redirected to the v2 lending protocol and markets.
These changes will be executed over the next 7 business days beginning with the launch of the lending pools on September 14th, 2022.

Rewards Migration Phase 5

With the growth of STBL2 liquidity, the OPUL-STBL pool, launched in partnership with the Opulous team, will be deprecated over the coming month beginning on September 16th, 2022. Future pools will focus on promoting the growth of STBL2 liquidity.

Video Tutorial: Migrating Positions V1 -> V2

Tutorial coming soon!
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Outline
Migration from V1 -> V2 Plan
Rewards Migration Phase 1
Rewards Migration Phase 2
Rewards Migration Phase 3
Rewards Migration Phase 4
Rewards Migration Phase 5
Video Tutorial: Migrating Positions V1 -> V2