Announcing LATTEv2 — preparing for our bright future.
Dear Baristas,
Words cannot describe how grateful we are for your trust and support, as evidently shown in the early sold out of the OG NFTs. However, as shared in our Roadmap last week, this is only the beginning of our journey to becoming the leading DEX. The team has big plans for LatteSwap, and after a long and intense internal discussion on the execution details, we’ve realized that there are some limitations on the LATTE Token contract. As a result, I’d like to take this opportunity to explain to you those limitations and how the team will address them.
🐢Current Limitations
Due to the current LATTE contract structure, our MasterBarista contract is the only contract that is allowed to mint LATTE, limiting the type of incentives distribution to only token staking. While this is a typical structure for many DEXes— i.e., stake LP tokens to earn rewards, the model only works if the incentive structure is used strictly for LPs. As LatteSwap plans to go beyond just being a traditional DEX, and expand into NFT Marketplace & play-to-earn games, the current contract structure will not allow us to develop incentive mechanism to bootstrap activities in those areas.
For example, if we wanted to reward users for engaging in activities on our planned NFT marketplace, such as buying or selling their NFTs, we will not be able to do so with the current contract structure. This greatly limits the development of any potential innovative incentive model, and will not allow LatteSwap to achieve its aspiration of being an established pioneer of the DeFi & NFT space.
Moreover, with our potential expansion into other segments such as play-to-earn games, staking tokens might not be the most appropriate method to incentivize and grow the ecosystem.
✌Introducing LATTEv2
The core team believes that the benefits of a more flexible LATTE token contract will greatly outweigh the development cost required in upgrading. In LATTEv2, we will add the flexibility where LATTE can be minted from various activities in addition to token staking! This will also greatly improve the value and utilities of LATTE as the one token across multiple product and services under the LatteSwap umbrella. An alternative to the migration to LATTEv2 would have been to keep issuing new tokens as we launch new products, which we believe is a disservice to our early adopters.
We also believe that the best time to implement this change is now. As our ecosystem grows and LATTE is integrated with more protocols and platforms (e.g., Centralized Exchanges), the task will become even more complex and challenging.
What do you need to do 🤔
We try to make this migration to LATTEv2 as seamless as possible for our users. Depending on how you currently participate in the LatteSwap platform, there might be some actions you need to take.
▶️LATTE token holders
There will be a UI for you to easily swap your LATTE → LATTEv2, with a guaranteed exchange rate of 1 LATTE = 1 LATTEv2. You will also have plenty of time to swap. There is no rush on this (UI for Swapping will go live on Wednesday, October 6th)
One thing to note is that as liquidity mining rewards will be shifted to LATTEv2, liquidity will also be consequently shifted over to LATTEv2. Thus, if you plan to sell your LATTE, it will probably be better to do so with LATTEv2 to minimize potential price impact.
▶ OG NFT Holders
You will automatically start earning LATTEv2 rewards. You don’t need to do anything with your staked NFTs.
▶️ If you are a liquidity provider in LATTE-BUSD pool
Rewards will be shifted to LATTEv2-BUSD. You will need to exit your current LP position, and swap your LATTE → LATTEv2 (as shown above) in order to continue earning the rewards.
▶ If your are a liquidity provider in other LP pools
There is no action required. You will continue to receive rewards when we switch over to LATTEv2.
Depending on when you claim your LATTE rewards during the transition, you might still receive LATTE, which you will have to swap manually to LATTE v2 via our UI. But don’t worry, all your rewards will be accounted for. You won’t miss any earnings, regardless of when you claim.
▶️If you are staking in the LATTE single asset pool
Rewards will shift to LATTEv2 staking. You will need to unstake your LATTE from the LATTE single asset staking pool and swap them for LATTE v2. There will be a LATTE v2 staking pool set up for you to continue earning the rewards.
▶Locked LATTE from Bonus Rewards Period
Locked LATTE rewards earned from the Bonus Rewards Period will be automatically swapped to LATTEv2 for you. You don’t need to do anything. They will also be unlocked per the original timeline — no changes.
🕑Migration Timeline
Migration will happen over the next several days. Tuesday and Wednesday will be preparations while the execution will be on Thursday.
Tuesday October 5th, 2021
- Queue related transactions for upgrade
Wednesday October 6th, 2021
- Deploy LATTEv2 contract
- UI for users to swap LATTE → LATTEv2
Thursday October 7th, 2021
6 AM UTC (approx.)
- Turn off LATTE emission
There could be a period of ~1 hr where emission is turned off during the migration.
7 AM UTC (approx.)
- Turn on rewards for LATTEv2
- Rewards will be shifted from LATTE-BUSD → LATTEv2-BUSD
- Rewards for LATTE single-asset staking will be shifted to LATTEv2
Security 🔒
As usual, the migration will be subject to our security process. This includes getting the contracts audited as well as putting them through our intensive code review process. The audits for the migration had been completed by Watchpug — you can find the audit report here.
Still have questions?
The core team and moderators will be available on Telegram and Discord to answer any questions you may have. We will also post frequent updates on our social channels during the migration, so please continue to monitor them to get the most up to date announcements from us.
Thank you for your continued support of our café 🙏🙏
