Official Post Release on Medium by the Pancake Swap Finance Team.
Pancake Swap has made the following announcement on their medium page. We thougt it was interesting enough to share the post on BSCN directly.
Official Migration Statement by Pancake Swap
Are you guys ready for next week’s auto-compounding CAKE-CAKE Syrup Pool?
Here’s something more to whet your appetite: we’re getting ready for PancakeSwap V2, beginning with a “journey” of sorts… ✨a migration✨.
What does that mean?
We’re getting ready for PancakeSwap V2. To do that, we’re going to transfer (“migrate”) two of our current smart contracts to new, upgraded contracts.
Put simply, we’re creating a new set of LP Tokens, and our farms and exchange will start supporting the new type instead of the old ones.
Why do we need to migrate?
The current PancakeSwap Router and PancakeSwap Factory contracts are not upgradeable. This means that, at present, we can’t do awesome things like adding additional incentives by changing the existing fee structure. Oh, and we’ll also be taking this opportunity to ramp up our operational security.
So, we need to adjust the fee structure just a little… but by how much, you decide!
Take a look at the options below and don’t forget to vote!
Please note — The distribution to CAKE holders is intended to help better spread the returns out across different incentives.
CAKE that is staked in the farm or syrup pools will NOT receive the distribution of the fee rewards.
Option 1: Split — 0.22% Trading Fee 🔥🥞
🤝 0.15% LP token holders
💰 0.03% Treasury
🔥 0.02% CAKE buyback and burn
🥞 0.02% Distributed to CAKE holders
Option 2: Burn — 0.22% Trading Fee 🔥🔥
🤝 0.15% LP token holders
💰 0.03% Treasury
🔥 0.04% CAKE buyback and burn
Option 3: Big split — 0.25% Trading Fee 🔥🥞
🤝 0.17% LP token holders
💰 0.03% Treasury
🔥 0.025% CAKE buyback and burn
🥞 0.025% Distributed to CAKE holders
Option 4: Big burn — 0.25% Trading Fee 🔥🔥
🤝 0.17% LP token holders
💰 0.03% Treasury
🔥 0.05% CAKE buyback and burn
Even with a slight increase in fees (to the benefit of CAKE holders), PancakeSwap’s trading fees are still lower than the traditional 0.3% used by nearly every other notable AMM DEX.
When will the migration start?
The migration will start on Friday 23rd April at 5AM UTC.
What will happen?
After the migration, PancakeSwap will stop giving out rewards for the old type of LP Tokens, and start giving rewards for the new type of LP Tokens.
We’ll also make a new set of farms with the same rewards and token pairs as the old ones. The old farms will stop giving out rewards, so you’ll need to transfer to the new ones to keep farming yield.
In terms of your experience, not much will change: you just need to do a few things:
What do I need to do?
If you are currently in possession of PancakeSwap LP Tokens, whether they’re staked in farms, vaults, or simply in your wallet, you’ll need to:
- Unstake your LP tokens from old farms
- Remove liquidity from old type of LP
- Add liquidity to the new type of LP
- Restake in new farms
Four simple steps. We have a dedicated migration page ready to go that will help you speed through it in just a few clicks.
If you don’t have any LPs staked, well, then you don’t need to do anything at all!
Do I need to do anything with Syrup Pools?
No, Syrup Pools won’t be affected. You can still keep earning from the same Syrup Pools as usual.
Why should I migrate?
The migration means that PancakeSwap will stop giving out CAKE rewards to the old farms, and start giving them to the new ones.
That means there’ll be super high APRs for a little while after the migration, because it’s essentially going to start as a fresh new yield farm all over again!
But if you stay in the old ones, you won’t earn any of that delicious CAKE or trading fees.
Why not just call the migration function?
That was the initial plan from day one and the reason we left the migration function in the code itself. But we’re now at the point where a large number of projects are using PancakeSwap LP tokens in their protocols and as such, calling the migration function would be very destructive and likely damage the overall BSC ecosystem. So, we opted for the slow, safer way in coordination with many of the projects that utilizing PancakeSwap LP tokens.
What if I’ve staked PancakeSwap LP tokens on a different BSC project?
We have already spoken with most of the major BSC projects that are currently using PancakeSwap LP tokens, in order to let them prepare for migration.
The requirements for what you need to do (if anything) will be set by them:
Please follow your chosen project’s social media and community for specific answers relating to their product.
Will I lose my LP tokens?
No, you will not. The only downside is that if you’re slow to migrate your LP tokens to the new type, you’ll be missing out on potential staking rewards.
Will I lose my pending rewards?
No, you won’t lose any yield or other rewards that you have already earned. You will only lose the opportunity to earn rewards from farms and trading fees if you don’t migrate. Migrate early to maximize your rewards!
If you have any other questions at all, feel free to tweet them at us using the hashtag #AskPancakeSwap and we will respond to as many as we can.
We’re looking forward to taking you with us on the next steps of PancakeSwap’s journey!
Source: Medium Page Pancake Swap Finance
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