Voting instructions

Vote FOR to grant the DAO mult-sig signers the authority to migrate v2.1 POL Surplus to v3 and re-enable direct withdrawal from V2.1 per the 4 phase migration strategy detailed below.

Vote AGAINST to take no action.

Summary

The purpose of this proposal is to come to a final resolution to v2.1/3 migration and surplus discussion that has been ongoing for over 110 days. This topic has been extensively discussed and the proposal is in alignment with what seems to be the community consensus for a path to resolution.

The previous discussions are linked below for your ease of reference and based on @NIX 's detailed 4 part migration analysis within. For ease of reference, the historical chats are provided below:

https://gov.bancor.network/t/proposal-move-v2-1-liquidity-to-v3/3872/229?u=infoparity

https://gov.bancor.network/t/migrate-pol-from-v2-1-to-v3/4081?u=infoparity

4 Phase V2.1 POL Surplus Migration and V2.1 Withdrawal Strategy

Phase 1: Cooldown Period

• Provide a 1 week cooldown period for v2.1 LPs to make a final determination to migrate to v3 or stay in 2.1.

Phase 2: Permanently stop migrations to v3

• Remove the ability for v2.1 to migrate to v3 permanently after the cooldown period has lapsed. This prevents gaming the system to minimize an LP’s potential losses. After this phase is complete migrations from 2.1 to 3 are permanently deprecated.

Phase 3: Move v2.1 POL Surplus

• Move the POL surplus for v2.1 pools in surplus per XRX’s analysis (see above 4 part post in “Summary” section).

Phase 4: Reopen v2.1 withdrawals

• After POL surpluses are migrated, reopen the ability to withdraw from v2.1. LPs withdrawing from v2.1 will experience true impermanent loss, not the additional re-balancing losses based on XRX solution.

Conclusion

Coming to a resolution on the 2.1/3 migration debate is a critical step to alleviating the v3 deficit and honoring protocol obligations for legacy LPs in 2.1. The 4 phase strategy provides a clear end to the debate, allowing the DAO to focus all resources on further improvements to v3 and the new v4 protocol which will soon be shared. Thank you for your consideration and I look forward to coming to a solution.