Migrate liquidity to Balancer V2

As most of you may know, most of the liquidity of HAKKA on Ethereum is currently on Uniswap V2 and Balancer V1. However, both of them have released updated versions; the landscape of DEX has changed a lot these days. As a result, I believe it’s a good time to consider migrating liquidity to somewhere else.

At first glance, Balancer seems to be the better choice to me, considering we are a more long-tail-ish token. There’s a higher chance that we’ll build stuff on top of Balancer with its flexibility. Besides, using Balancer V2 can be more inclusive than Uniswap V3 to different sizes of liquidity providers as well.

There are some non-functional aspects to be considered:

  • Users are more familiar with Uniswap interface
  • Price Aggregators (Coingecko, CMC) support Uniswap better than support Balancer
  • Applying liquidity mining on UNI V3 LP will be more complicated
  • Balancer provides extra incentive for LPs of eligible tokens(not sure if on V2 as well)
  • Balancer sponsors BAL to traders as compensation for gas

Overall, I recommend let’s migrate liquidity to Balancer V2 first. If things have changed, we can make different decisions later.

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Balancer V2’s BAL liquidity mining programme shifted to a tiered-slots system, where liquidity pools are periodically picked by the governance/delegated committee to fill the slots and get rewarded:

  • Tier 1 (T1): 15,000 BAL (4 slots, total of 60k BAL per week)
    Pools where strong liquidity is paramount, e.g. for acting as hubs by connecting liquidity in order routing.
  • Tier 2 (T2) : 5,000 BAL (9 slots, total of 45k BAL per week)
    Strategic pools, e.g. having strong potential for high volume given high liquidity.
  • Tier 3 (T3) : 2,500 BAL (12 slots, total of 30k BAL per week)
    Promising pools, e.g. mid caps, and experimental pools that have proven significant traction in Tier 4.
  • Tier 4 (T4) : 1,000 BAL (10 slots, total of 10k BAL per week)
    Experimental pools, e.g. many-token pools, newly launched/small cap projects, early stage partnerships.

Balancer’s Latest Snapshot

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So… this means, unlike V1, if a V2 pool isn’t picked by the governance then it’ll never get any BAL reward. We should take this into consideration.

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Why not develop and expand both (including Uniswap and Balancer) ? Is a good thing