https://etherscan.io/tx/0x35872cbcfa7c07cb52232940bdf119411dc9e4da55f82d197db61bf6b060210c
gm or gn.
We have observed the recent snapshot.org proposal to migrate 50% of the liquidity from the uniswap v2 pool to an xchange v2 pool.
Pursuant to the passage of this proposal by a plurality of X7DAO holders, we will begin to work on a trustless liquidity migration contract.
In migrating liquidity, we will need to be careful to prevent any bot extraction during the process. This is relevant because any party can currently add liquidity to the Xchange pairs, and furthermore, adversarial liquidity providers could intentionally modify the liquidity ratios (prices).
However, the contract that will implement this liquidity migration will:
- Withdraw 50% of the liquidity from the uniswap pool (giving it WETH and X7R or X7DAO tokens)
- Ensure an exact price match without excess loss, by funding the Xchange pairs and calling sync
- Add liquidity
- Validate that the pools are correctly priced (or fail)
- Lock the new Xchange LP tokens (and relock the uniswap LP tokens)
This will happen in a manner that is semi-permissioned to prevent price manipulation, and an MEV blocking RPC will be used to further reduce any risk of liquidity loss.
Additionally we will go with an incremental lock approach post liquidity migration, first locking for 15-30 days, then increasing to 90 days, and then to 180 or 365 days, as desired. This will allow us to evaluate the market and ensure that it is operating in a desirable manner.
We expect to be able to finish this migration contract in advance of the existing liquidity lock expiration. However, if that timing slips, we will extend to the lock in small increments until ready.
Happy Holidays!
