Important Updates You Need to Know. This blog breaks down the forthcoming migration, highlighting its timeline, essential steps, and pertinent updates.
Key Dates
- Tentative Start Date: Migration is scheduled to be available on September 21st.
Once the migration begins (Sept 21st) all rewards will be directed toward v2 stakers. Stakers in v1 will not earn rewards until they migrate.
The Four Key Migration Functions
During the migration (Sept 21st), stakers will need to complete a suite of transactions to migrate their stake from v1 to v2 within the UI.
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Claim: Claim any remaining unclaimed v1 Rewards
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Register: Register your escrow entries to ensure they are migrated to v2 after vesting.
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Vest: Stakers vest their tokens to pull them out of the old staking v1 contract.
Please note:* no early vesting penalty will apply for stakers who complete all steps in the UI. You must register escrow entries and complete migration to avoid penalties.*
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Migrate: Vested tokens from v1 are sent to the v2 contract, and registered escrow entries are recreated in the v2 contract. This is the final, crucial step for a successful migration.
We ask that no one attempt a migration through Etherscan. To ensure a successful migration, please complete the steps through the Kwenta UI.
Essential Migration Notes:
Once beginning the migration process, users must complete the migration as soon as possible. To ensure a successful migration, please take note of the following:
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After completing the register step (step 3), users have a two-week window to finalize the migration process.
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Stakers who do not complete the migration process within the two-week window will be unable to migrate and will forfeit an early vesting penalty. Ensure you take timely actions to avoid such losses.
Early Vest Distribution and Improved UX
There's a shift in the architectural framework based on feedback from auditors. Previously, we thought to use a EarlyVestFeeDistributor contract for disbursing early vest fees. However, that has changed:
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Direct Distribution: Early Vest Rewards will no longer pass through intermediaries. They will now be sent directly to our staking contract.
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Simplified User Interface: With this new method, users do not need to engage with a separate claim UI.
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Variable APY: The Annual Percentage Yield (APY) for staking will not remain constant. It will alter every week, contingent on the amount vested in the preceding week. It's worth noting that each week is viewed as an epoch, with a new cycle commencing every Thursday when fresh rewards are minted.
This change hopes to enhance the user experience, making it more streamlined & passive.
How we did it:
With V2 staking and implementing early vest fee distribution, an intermediary contract stakingRewardsNotifier is introduced. This contract retains all early vest fees per epoch. Once stakingRewardsNotifier obtains weekly inflation, it distributes the minted inflation & collected early vest fees to the stakingRewards contract. Consequently, stakers earn additional tokens in the subsequent epoch linearly, termed as “rewards.”
More about Staking v2
Staking v2 is an essential upgrade that enables highly requested features such as escrow migration and the distribution of early vest fees to stakers. Migration to the new Staking v2 contracts also brings several backend improvements, including better on-chain data and upgradability, ensuring future feature upgrades are able to utilize more flexible and robust infrastructure.
Still have questions? Come visit us in discord for clarification on this process, or how Staking v2 may impact you. Although Staking v2 migration is not yet available, we’ve decided to communicate the process early to allow for feedback or additional questions, and we will update this blog or make additional announcements based on community feedback.
Happy Staking! (v2)
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