UP to UNFI Migration #3
Not all migrations will be the same.
- Important terms and conditions apply, all migration participants should read this entire document before proceeding.
- There are 10,000 UNFI available for this migration
- Not all migrations will be the same. This will provide options for migration and differing opportunities to better serve the diverse and growing, multi-chain Unifi community.
- This migration will be based on the redeem value of UP on each chain, and not market value.
- Migration #3 will open on Thursday, January 28, 2021 and close on Friday, February 5, 2021.
- All UP contributed to the migration process will be burned (not redeemed) at the end of the event. Burning UP benefits everyone.
- This article may be revised at any time, without notice, to reflect the most current information. Participants in the UP to UNFI migration event should confirm their information is current prior to participation.
The UP to UNFI migration process is an essential component of the UNFI-powered Global Governance Model (GGM). Access to UNFI gives liquidity providers and traders on all Unifi blockchains a voice and opportunity to participate in the GGM, including earning UNFI staking rewards.
UP and UNFI Use Cases
UP is the blockchain-specific liquidity mining token of the Unifi Protocol. Every UP token has a redeem value backed by the base token of the particular blockchain on which it resides. For example, UPbnb on Binance Smart Chain can be redeemed for BNB, while UPeth on Ethereum can be redeemed for ETH. UP is only minted when fees are earned by the Protocol.
UNFI is the Global Governance Token. Under the UNFI Proof of Stake ecosystem, candidates for the Unifi Council of Representatives will campaign for election as a Council Representative. Council Representatives will have the ability to propose or vote on changes to the Unifi DAO while earning Governance Rewards. UNFI token holders can earn Staking Rewards for staking their UNFI tokens, and may earn even more rewards from their chosen CR after delegating their staked UNFI.
Migration based on redeem value, not market value
This migration will be slightly different than the previous two. The ratio of UP to UNFI will be based on the redeem value of UP on each chain, and not its market value. Unifi would like to remind the community that not all migrations will be similar to each other, with many of the migration parameters available for discretionary changes. Unifi — and others — will be proposing and evaluating effective methods of migration that appeal to a diverse community. A variety of options for migrating UP to UNFI is a benefit to the Unifi ecosystem.
There will be 10,000 UNFI available for migration.
How will this migration work?
Starting on January 28 , 2021, UP holders will go to https://unifiprotocol.com/ and select the blockchain on which their UP tokens reside by clicking the appropriate “Add Liquidity” button. In the UP tab of the uTrade app, there will be an option for UP to UNFI Migration. Ensure the wallet address with the UP tokens is connected to uTrade.
In the Migration dashboard, input how much UP is to be contributed into the migration process. Provide the Ethereum address where you will want to claim the UNFI. Note: UNFI will need to be claimed and will not be automatically distributed. ETH will be required to cover the network cost of claiming the UNFI.
The event will conclude on February 5, 2021. Participants will be able to claim their UNFI at https://gov.unifiprotocol.com into the ETH address they had submitted. The user must have an Ethereum wallet that is compatible with Unifi (such as MathWallet or MetaMask) that can access and transact with that address using the private key. Information on supported wallets can be found here.
All UP contributed to the migration will be burned (not redeemed) at the end of the event.
If a participant attempts to contribute UP after the event is closed, the UP will remain in their wallet. This may still trigger a transaction fee to be charged by the blockchain. Therefore participants are encouraged to participate early in the event.
How is the ratio of UP to UNFI discovered?
1. UP tokens on each blockchain will be assigned a USD equivalent value (USDEV) based on the redeem value of UP on that blockchain. USDEV is calculated by multiplying the redeem value of UP on that blockchain in base tokens by the USD market price of that base token on Binance.
2. Each UP contributed to the migration process creates a claimable amount of UNFI that is in direct proportion to its percentage of total USDEV participating in the migration process by UP tokens on all Unifi blockchains combined.
Let’s make some assumptions for the sake of this example. We will only be looking at two blockchains in this example for simplicity. Also assume 10,000 UNFI tokens are available for the migration process in this example.
Assume UPbnb can be redeemed on uTrade for 6 BNB, and BNB is valued at $50 USD. Then each UPbnb would be assigned a USDEV of $300. The total amount of UPbnb contributed to the migration was 10, making the total USDEV on BSC $3000.
Assume UPont can be redeemed on uTrade for 2 ONTd, and ONTd is valued at $1. Then each UPont would be assigned a USDEV of $2. The total amount of UPont contributed to the migration was 500, making the total USDEV on Ontology $1000.
The total USDEV contributed to the event from all blockchains was $4000. $3000 from BSC, and $1000 from Ontology. In other words, 75% of the total USDEV was from BSC migration, and 25% was from Ontology migration.
The amount of UNFI available for this example UP to UNFI migration is 10,000 UNFI.
75% (7,500 UNFI) will go to participants on BSC, and 25% (2,500 UNFI) will go to participants on Ontology.
If someone contributed 2 UPbnb ($600 USDEV) to the migration process on BSC, that was 20% the total 10 UPbnb that participated (2/10). So they would receive 20% of the 7,500 UNFI for BSC, which is 1,500 UNFI.
If someone contributed 300 UPont ($600 USDEV) to the migration process on Ontology, that was 60% of the total 500 that participated (300/500). So they would receive 60% of the 2,500 UNFI for Ontology, which is 1,500 UNFI.
Notice how the user on BSC contributed $600 USDEV and the user on Ontology contributed $600 USDEV, so they each received the same amount of UNFI. But due to market prices of the base tokens, it only required 2 UPbnb while it required 300 UPont for the same result. It is important to realize the final outcome will depend on how much UP is contributed in total on each blockchain. It will not be possible to determine these ratios until the conclusion of the migration process.
User errors which could cause a loss:
1. UNFI for this event will be claimable as an ERC20 token on Ethereum. The participant must provide a valid Ethereum address where they can receive and interact with ERC20 tokens like UNFI. Providing a Binance Smart Chain address, or address from any other blockchain, could cause a loss of UP and/or UNFI.
2. Incorrectly inputting the Ethereum address to receive UNFI. Be careful for typos and missing/additional characters (including extra spaces).
3. The user must have the private key to the Ethereum address where the UNFI is claimable. DO NOT use an Ethereum address of an exchange wallet.
Terms and Conditions
The migration process is still a beta utility and any result is not guaranteed. The UP migration process is not reversible. All UP deposited into the migration will be burned. There is no way to reverse the migration process and no refunds are possible for any reason. Unifi can not retrieve UNFI made claimable at an address where the user does not hold the private key. Unifi is not responsible for any loss associated with the UP migration process, regardless of cause. Migrating UP to UNFI is a voluntary action taken upon by the UP token holder.
The migration process is dynamic and governed by market forces. No ratio of UP to UNFI is suggested, implied, or guaranteed. The final ratio of UP to UNFI will be determined following the close of the migration period. UNFI will be available for claim after the migration process has closed.
Users will be required to have ETH in the Ethereum address where they desire to claim the UNFI, in order to pay the network fee associated with claiming their UNFI.
Unifi Protocol’s website can be found at https://www.unifiprotocol.com/. You can also connect to the Unifi community on Telegram, Twitter, Reddit or Medium.
Developers — check out our bounty list to develop on the Unifi Protocol at https://gitcoin.co/issue/sesame-seed/Quest/1/100023698
All communications from Unifi are subject to Unifi’s standard terms and conditions, which can be found here.