DEFI

What do BSC users need to pay attention to in the upgraded PancakeSwap V2?

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What do BSC users need to pay attention to in the upgraded PancakeSwap V2?

After Uniswap announced the upcoming launch of v3 in May, many DeFi protocols have also announced the release of new versions. Binance's own blockchain BSC has gained significant popularity this year, with the most notable application being the decentralized exchange PancakeSwap also announcing an upgrade. What do the users who farm Pancake and related platforms need to do?

What is PancakeSwap v2 all about?

Similar to Ethereum smart contracts, BSC cannot be directly updated. If there are conditional changes, new smart contracts need to be created, and upgrades are made through "migration."

To provide certificates for the new version of LP Tokens, in simpler terms, PancakeSwap's deposit proof, PancakeSwap must have two new smart contracts: the new PancakeSwap Router and PancakeSwap Factory.

The goal is to support the new version of LP Tokens for farms and exchanges.

What changes will be made to the new version of LP Tokens?

PancakeSwap plans to adjust the transaction fee structure in v2, which is extremely important for liquidity providers' income.

The official proposal includes four options, allowing CAKE holders to vote on the snapshot governance platform:

Ultimately, the "mass burn" option received the most support. Those trading on PancakeSwap will pay a 0.25% fee. Uniswap and SushiSwap both charge 0.3%. Of the 0.25%, 0.17% will go to LP Token holders, who provide liquidity on the platform, 0.03% will go to PancakeSwap's treasury, and 0.05% will be used to repurchase CAKE and burn it.

After migration, what should BSC users do?

On the 23rd of Taiwan time, PancakeSwap smart contracts have completed migration.

The main changes will be for "farmers," those who provide liquidity for two tokens in the Farm. Users who only use the SYRUP pool, which is a pool that only holds one type of coin, do not need to migrate.

What farmers need to do is simple: withdraw liquidity from the old farms and pools and deposit them into the new ones.

4/23 16:00 Update: Due to compatibility issues, Pancake needs to redeploy, thus migration is postponed.

Migration process:

Old version V1 OLD

  1. First, withdraw all LP Tokens from the Farm.
  2. Then go to "Trade"->"Liquidity" to exchange LP Tokens back for the liquidity you provided. Note that the switch below is in V1 OLD.

3. Next, switch to "Version" to "New," and re-deposit the liquidity pair you wish to provide, obtaining the new version LP Tokens.

4. Finally, deposit the new version LP Tokens into the corresponding Farm to complete the migration.

It should be noted that the official statement mentions that the new version of farms will be gradually updated. As of the deadline, LP Tokens migrated to v2 cannot yet be placed in the farm.