V3 to V3 Migration

Price Range Fall Out

A 'price range' refers to the minimum and maximum price ranges in which an asset can be traded, and depositors will receive transaction fees if a transaction occurs within the price range.
When the token price of the deposited pool fluctuates, the ratio of assets in the pool changes. And if the token price falls outside the range due to drastic changes in token prices, depositors will only hold one token from the token pair. In that case, deposited assets cannot be traded within the rages, so fees and rewards cannot be earned.
For example, in a KLAY-USDT concentrated pool with 1 KLAY equal to 1 USDT at a minimum and 2 USDT at a maximum, the depositor's KLAY will be converted to USDT when 1 KLAY equals 3 USDT.


If no transactions occur within the depositors' price range, the pools become inactive, making it impossible for depositors to earn transaction fee profits and additional rewards (KSP, token airdrop, etc.). If so, depositors are required to withdraw their assets and re-deposit them.
The KLAYswap V3 pair deposit offers one-stop migration, allowing depositors to migrate their assets with a single transaction. The detailed procedure consists of asset withdrawal - deposit in the new price range, and depositors can migrate from the detail page of the pool they provided liquidity for.
*Case 1: If the token price changes to the Change2 state, transactions stop occurring in liquidity pool A, which makes pool A inactive.
*Case 2: If the token price changes to the Change1 state, transactions continue to occur in liquidity pool A, but the price might fall out of range and may turn into an inactive state.
▶ In both cases, depositors can re-deposit to a stable price range via migration and continue earning fee profit and rewards.
Please refer to the V3 Pair Deposit guide and policy.