Transitioning from Wanlend V1 to V2

After Wanlend V2 goes live on 08/09/2021 at UTC 6 AM, the users have three days to move funds from V1 to V2 before mining of WAND reward starts. Here are some questions that the community members have asked, and we would like to address them.

Q: How much time do I have to move from Wanlend V1 to V2.

A: There is no hard timeline. Preferably users should move from V1 to V2 within three days (08/09/2021–08/12/2021) such that users can get the additional WAND reward once it is online.

Q: Is it mandatory to move from V1 to V2?

A: No. Even though we encourage people to move assets and loans from V1 to V2, we cannot force people to do so since only the users have control over their assets. However, there will be incentives for participants in V2. Users who supply assets and borrow in Wanlend V2 will be rewarded with WAND governance tokens. There are no incentives for V1 users.

Q: Is there any penalty for continuing using V1?

A: As more people move from V1 to V2, the liquidity in V1 decreases and those who borrow from V1 but do not move to V2 will likely see surging borrowing interest due to the supply-demand balance. There will be a 1-month time window where V1 and V2 operate with the same maximum borrowing APR (32%). Afterwards, the V1 maximum borrowing APR will be adjusted to 64%, discouraging borrowing on V1.

Q: Do I have to close my positions and sell my borrowed assets from V1?

A: No. There are ways to avoid selling by moving the position little by little. Here is an example. Suppose you have supplied 1000$ and borrowed 500$ in V1, to make sure that at any point your loan-to-supply ratio is less than 75% (which does not trigger liquidation), you can do the following:

Initially, V1 supply 1000.000, borrow 500.000, V2 supply 0.000, borrow 0.000

• Step 1: Move 333.333 supply from V1 to V2. After this step, the status becomes: V1 supply 666.667, borrow 500.000, V2 supply 333.333, borrow 0.000
• Step 2: Borrow 250.000 from V2 and pay loan to V1. V1 supply 666.667, borrow 250.000, V2 supply 333.333, borrow 250.000
• Step 3: Move 333.333 supply from V1 to V2. V1 supply 333.333, borrow 250.000, V2 supply 666.667, borrow 250.000
• Step 4: Borrow 250.000 from V2 and pay loan to V1. V1 supply 333.333, borrow 0.000, V2 supply 666.667, borrow 500.000
• Step 5: Move 333.333 supply from V1 to V2. V1 supply 0.000, borrow 0.000, V2 supply 1000.000, borrow 500.000

Finally, the balances are V1 supply 0.000, borrow 0.000, V2 supply 1000.000, borrow 500.000. In this way, there is no need to sell anything.

Q: What if my funds are locked by borrowers and thus I am unable to move them to V2?

A: This can happen and there is no way to force people to pay back the loans. Having said that, the borrowers also need to pay high interest, up to 64% after one month time. You can just sit back and enjoy the high lending interest :) and eventually, the borrowers will pay back or they get liquidated.