V3 to V3 Migration Policy

1) KLAYswap's migration function usually goes through the following steps:

Approve (assets approval) - Withdraw the assets in the previous price range - Swap assets - Deposit assets in a new price range.

2) To withdraw assets, users must have LP NFT assets corresponding to the deposit certificate in their wallets, and the NFT asset approval transaction must be completed. Transaction fees are incurred on the Klaytn chain when a transaction is executed. The wallet owner has the right to transfer LP NFT assets, so if the asset is transferred to another wallet, withdrawal is not possible.

3) During the withdrawal process, the difference between the price at the time of deposit and withdrawal may result in asset loss.

4) Due to balance changes at the time of withdrawal, asset composition ratios and values are subject to change (see detailed policy on V3 pair deposit), and all rewards (transaction fee profits, KSP, airdrop tokens, etc.) distributed up to that point will be automatically credited to user's wallet.

5) For withdrawn assets, the smart contract automatically swaps and deposits the assets at the optimal rate based on the pool exchange rate for the user's chosen price range. When a swap is required, the V2 and V3 pools are used as swap routes and transaction fees are incurred. Each pool has its transaction fee rate.

6) Pair deposits are made after swap fees are subtracted. When swapping, the larger the transaction size (quantity), the greater the effect on the exchange rate between tokens in the pool, resulting in a difference between the current price and the price applied at the time of the exchange (price impact). Multiple runs in small quantities can reduce the impact.

7) Depending on the transaction size, there may be a price difference (Price impact) at the time of exchange, so the expected exchange rate at the time of deposit may not match the actual exchange rate. For this reason, deposits are only made within the transaction range (Slippage) set at the time of the swap, and if the range is exceeded, the deposit transaction may be reverted (Revert). Proceed with the deposit after checking all the information on estimated returns at the bottom.

8)Some assets (wei) may remain after depositing to the V3 pool, and the remainder will be automatically returned to the user's wallet.

Last updated