As part of Pancakeswap’s upgrade to V2, they are going to be migrating some of their smart contracts to newer upgraded versions. This migration is going to require users to migrate their LP tokens from V1 to V2 in order to continue to receive rewards and such. They have released some instructions on how to handle the migration. We’ll detail them below, BUT FIRST: an infographic, by @cryptotaku, breaking everything down.
From Pancakeswap’s Medium
According to Pancakeswap;
The distribution to $CAKE holders is intended to help better spread the returns out across different incentives.
$CAKE that is staked in the farm or syrup pools will NOT receive the distribution of the fee rewards.
Pancakeswap TG Announcements
Part of the V2 upgrade will be the increased trading fees and there is currently a governance proposal to determine what will occur with the trading fees, and Pancakeswap’s Medium page has more information about it here; https://pancakeswap.medium.com/the-great-migration-vote-4093cb3edf23.
Proposal Results
The winner was Option #4, which was to increase the trading fees to .25%, and going the “Big Burn” route which meant that .17% will go to LP token holders, .03% will go to the Pancakeswap Treasury and finally .05% will go to CAKE token buyback and burns.
How to Migrate LP Tokens to V2
It’s important to note that this process must be done by the users who own the tokens, and can’t be done by any yield optimizers or farms for you. The good news is once your tokens are migrated to V2, yield farms can simply update their masterfarm contract allocation points to the new V2 LP tokens, and everything will fully migrated. Apparently the V1 LP tokens will continue to work just fine, however they won’t receive any trading fees, so I highly recommend you go through the process.
Step 1
You must go to the “Farms” page in the Pancakeswap Menu, find any of the old farms you’re currently staked in, and unstake your LP tokens from them.
Step 2
Next you must remove your tokens from the liquidity pools, and you can do that by going to “Trade” and then “Liquidity”. On the “Version” tab click on “V1 (old)” and the bottom of the page, and then click on “Remove” and input your desired % to remove.
Step 3
You can now add your tokens to the new LP pools by going back to “Trade” and then “Liquidity” and clicking on “New” on the “Version” tab. From there, you may click on “Add Liquidity” to receive the new V2 LP tokens.
Step 4
And finally, starting at 5am UTC, which at publication time is in about 2 hours time, users will begin to be able to deposit the new V2 LP tokens into the new farms. Just go to “Farms” and select “Live” from the menu, and then you can proceed to deposit into the farms that you desire.
So What Next?
In about 2 hours, at 5am UTC the migration will occur, and PancakeSwap will stop giving out rewards for the old v1 LP Tokens, and start giving rewards for the new v2 LP Tokens. Over the next week+ yield farms and other projects that utilize Pancakeswap liquidity pools, will be upgrading their smart contracts to become fully compatible.
It’s important to note that the SYRUP pools are not effected.