V2.1 Liquidity Migration
Trader Joe avatar
Written by Trader Joe
Updated over a week ago

Liquidity Book V2.1: LP Migration

Liquidity Book V2.1 comes with a complete code overhaul that introduces a number of optimisations for the end user. This update to Liquidity Book will also mean that new Liquidity Book Pools will be opened and will replace existing Liquidity Book Pools.

Therefore, all Liquidity Providers that are currently providing liquidity Liquidity Book pools, will need to migrate their positions into new (V2.1) pools. The migration of Liquidity Pools will happen in short spaced tranches to minimize disruption, but the aim is to have full migration executed as soon as possible.

Current ‘V2’ Liquidity Book pools will remain active and will continue to receive expected trading volume, these pools will remain open for depositing and rebalancing until further notice. You can expect that these existing pools will be closed for new deposits in the near future, therefore we urge all Liquidity Providers to migrate to the new Liquidity Book pools, as soon as possible.

The steps to migrate your position

Step 1: If you see a ‘migrate’ tag that means you can migrate your position. Start this process by entering the Liquidity Book pool.

Step 2: Remove your active Liquidity, as per normal. Then, click the Tractor / Yellow ‘migrate’ button.

Step 3: Redeploy your liquidity, this step is simply supplying liquidity so you can deploy any shape either the same you had previously or a new shape.

Migration Complete!

Video of the Migration Process

[video-to-gif output image]

What changes are there with V2.1 Pools?

  • V2.1 optimizes gas usage to be an average 30% lower for trading and managing liquidity, therefore you should find gas costs are now cheaper for all Liquidity Book related transactions

  • Your fees will compound automatically inside the Bin that fees are earned from, eg:

    • If 1 swap generates fees for the Active Bin, the fees you earn will be compounded into the active bin

    • If 1 swap causes the Active Bin to move by 5 bins, if the LPer has liquidity in all 5 bins then the fees accrued in each of those respective bins, will be compounded back into those respective bins at the time of the swap.


Can I keep my position in the current pool and not migrate?

Yes you can, but deposits will eventually be disabled for V2 pools which may mean your liquidity moves out of range and you will be unable to reposition.

How long do I have before I should migrate?

It is best to migrate as soon as possible, a soft migration will last between one to two weeks, after that you may find that you are unable to reposition your LP into a V2 pool.

How are my fees compounded in a V2.1 pool?

All fees are compounded into the active bin when they are earned, the analytics on the UI will provide full tracking of your fees, helping you to understand how much you earned by hour timestamps as well as what bin earned how much.

Did this answer your question?