We are excited for PancakeSwap, our core partner on Alpha Homora vBSC, to launch PancakeSwap V2 on April 23rd at 5AM UTC. Starting at this time, PancakeSwap will begin migrating liquidity from V1 to V2.
On the Alpha Homora vBSC side, we are already working to support PancakeSwap V2 - which will be available shortly after once PancakeSwap V2 goes live.
What does this mean for Alpha Homora vBSC users?
Alpha Homora vBSC will clearly display 2 sections; The first section will show the pools on PancakeSwap V1 and the second section will show the pools on PancakeSwap V2.
For lenders, you don’t have to do anything with regards to this migration. You can continue to lend and earn high lending APY continuously.
For users on the farming side, you are encouraged to close positions in the PancakeSwap V1 section on Alpha Homora vBSC website (image reference below) before migration from PancakeSwap V1 to V2 takes place (starting at April 23rd, 5AM UTC).
Once the PancakeSwap V2 section on Alpha Homora vBSC website opens up (image reference below), users can open their leveraged yield farming positions here.
Closing positions ahead of the migration is encouraged because once migration takes place, there may be a liquidity shift from PancakeSwap V1 to V2 that leaves users still in the V1 pools to bear high slippage when closing positions after migration has already begun. This high slippage may increase a positions’ liquidation risk.
Why do we require users to close positions?
We require users to close positions because we design Alpha Homora vBSC yield farming contracts to not be upgradable. If the Alpha Homora vBSC contracts were upgradeable, the protocol would have to sacrifice certain angles of security to accommodate. This design decision ensures we provide maximum security for our users.
About Alpha Finance Lab
Alpha Finance Lab is a DeFi Lab and on a mission to build an ecosystem of DeFi products (the Alpha ecosystem), consisting of innovative building blocks that capture unaddressed demand in key pillars of the financial system. These building blocks will interoperate, creating the Alpha ecosystem that will be an innovative and more capital efficient way to banking in DeFi.
Alpha Homora is Alpha Finance Lab’s first product and DeFi’s first leveraged yield farming product that captures the market gap in lending, one of the key pillars of the financial system.