Balancer Liquidity Migration Tutorial
The new Balancer UI for V2 was launched on May 11th and has already received compliments from DeFi experts and new users alike.
Today we would like to introduce our very simple, two-step migration tool for any liquidity providers who want to move their liquidity from Balancer V1 to V2.
First, head over to the dashboard on the V1 pool management UI:
On your dashboard, any liquidity you have that can automatically be migrated to V2 will have a purple button labeled "V2 Migrate" on the far right:
If you click on that button you will see the migration overview showing from which V1 pool to which V2 pool your liquidity is being migrated. You can click on the "i" icon to see more details like the pool addresses:
In some cases, the weights of the V2 pool might vary slightly from those of the V1 pool. Make sure you are okay with that slight change before proceeding. Click on “Unlock” and submit the on-chain transaction using your preferred Ethereum wallet to start the migration.
After the unlock transaction is confirmed, the last step is to migrate the liquidity. You'll have to submit a second on-chain transaction for this:
When should I migrate my liquidity?
Liquidity providers don't need to worry about migrating immediately, as the Liquidity Mining program will gradually shift from incentivizing liquidity in Balancer V1 to V2.
Starting from Monday the 24th, each of the following three pools on V2 will receive 2,500 BAL per week as liquidity mining incentives:
- BAL/WETH 80/20
- WETH/DAI 60/40
- WBTC/WETH 50/50
The process of shifting more of the liquidity mining incentives from V1 to V2 is fully driven by the Ballers, taking input from the Balancer community on our Discord channel. This has been approved by Balancer governance through this proposal. From what has been discussed so far, the migration of liquidity mining from V1 to V2 should last about 8 weeks, though this can change according to community input.
By the end of this transition period, every liquidity provider who wants to keep getting BAL from liquidity mining should migrate their liquidity from Balancer V1 to V2.
For clarity's sake, the total amount of BAL minted every week will not change, being the same 145,000 as usual. All the BAL given to pools on V2 will be subtracted from BAL distributed to liquidity providers on V1.
Learn more about Balancer V2:
- Introducing Balancer V2: Generalized AMMs
- Balancer V2 — A One-Stop-Shop
- The Balancer Report newsletter
- Aave & Balancer Partner to Build The First Asset Manager for Balancer V2
- Balancer Labs Offers $2M Bug Bounty to Spot Vulnerabilities
Learn about using a Balancer LBP to conduct a fair token distribution: