The Great Migration FAQ
Liquidity Providers can find answers to Balancer’s Pool Migration here
Why am I Migrating Funds?
Background
Late last year the ChainSecurity team reported a vulnerability via Immunefi involving read-only reentrancy that might render getRate() and related functions manipulable, and thus unsafe to use in many contexts. Upon further review, the Balancer Labs team realized there was in fact a possible exploit on the pools themselves: albeit a very obscure and inefficient one, and the team took immediate measures to reduce the chance of an exploit.
The full brief of the Reentrancy Vulnerability can be found here.
Balancer Labs took all possible measures to contain and mitigate this vulnerability: and quite successfully. No funds have been lost, and the chances of an exploit decrease with each passing day. At the pool level, we simply need to ensure that no state-altering functions on pools can be called externally when inside the Vault’s reentrancy context: i.e., a public call that updates a protocol fee or rate cache can be called externally on its own, but cannot be called during a Vault operation (swap/join/exit).
What is the Great Migration?
The mitigation of the recent issue Balancer announced involved disabling protocol fees for many liquidity pools. To restore normal operations, new versions of the affected pools will be deployed, and liquidity providers will be able to migrate their funds. Any incentives will be transferred to the new pools. Balancer aims to make this transition as smooth and painless as possible, and most users will be able to migrate directly through the Balancer UI.
What steps do I need to take to Migrate?
Users must take the following actions to migrate funds to the new Pools:
- Step One — Withdraw from the gauge on Balancer or Aura, this is dependent on where you’re farming.
- Step Two — Withdraw from the original liquidity pool on Balancer
- Step Three — Deposit to the newly migrated liquidity pool on Balancer
- Step Four — Deposit to the new gauge on Balancer or Aura
It’s important to note that this migration is optional — funds are not at risk in the old pools as the issue has been mitigated. We will be disabling gauges for the old pools and directing all incentives towards the new pools, so users interested in earning rewards should read the following schedule closely to know when they need to take action.
When do I need to Migrate Funds?
The Great Migration will happen in waves. The first wave covers most affected pools on Ethereum, the second wave will primarily include Polygon pools, and the third wave will see the introduction of new Aave Boosted Pools that use Aave V3 across all of Balancer’s networks.
Wave 1 Pools:
- wstETH/sfrxETH/rETH (staked ETH 3pool)
- rETH/RPL
- rETH/BADGER
- wstETH/LDO
- wstETH/ACX
- wstETH/bbaUSD → wstETH/bbeUSD
- TEMPLE/bbaUSD → TEMPLe/bbeUSD
- rETH/bbaUSD → rETH/bbeUSD
- DOLA/bbaUSD → DOLA/bbeUSD
Pools previously paired with bbaUSD (Balancer Aave Boosted USD) are transitioning to use bbeUSD (Balancer Euler Boosted USD) as we await the coming migration of bbaUSD to use Aave V3, which is expected in the next few weeks. Emissions will begin today, February 16th, on many of these pools. TVL will be low so it is recommended to only deposit proportionally in the beginning. It will take some time for all emissions to move over from old pools to new pools so no need to ape!
Later Waves
- STG/bbaUSD
- qETH/bb-a-weth
- wstETH/USDC (Arbitrum)
- THX/stMATIC (Polygon)
- SD/maticX (Polygon)
- bb-am-USD/2BRL (Polygon)
- BRZ/jBRL (Polygon)
- jEUR/agEUR (Polygon)
- jEUR/PAR (Polygon)
- tetuQI/QI (Polygon)
- stMATIC/wMATIC
- maticX/wMATIC
- bbaUSD
All of the above pools will be migrated over the next few weeks. Please note, there isn’t a firm timeline for this migration but if you are a Liquidity Provider please stay tuned for additional information. We will make an announcement when the above pools are ready to be migrated.
Closing Thoughts
The Balancer Labs team took immediate measures to mitigate risk and prevent a further exploit. We’d like to recognize and thank the projects in the Balancer ecosystem for amplifying the original message and helping to minimize the possibility of further exploitation. We’d also like to thank Balancer LPs for their patience and understanding as our team worked through this solution.
We will provide timely updates on the original Balancer forum thread and follow us on Twitter and Discord for any new developments.
This article is for informational and educational purposes only. It should not be construed as investment or trading advice or a solicitation or recommendation to buy, sell, or hold any digital assets. Transactions on the blockchain are speculative. Carefully consider and accept all risks before taking action.
