DFX has updated their smart contracts and commenced the roll out of their V2 upgrade.

Welcome to a special update edition of the Techemynt Times newsletter. We have an important PSA for the NZDS community.

DFX, the leading platform to stake, trade, and earn passive rewards with NZDS, is undergoing a major update, a transition from a V1 to a V2. The first stage of the rollout has begun and there is important information that NZDS on DFX users and liquidity providers need to be aware of.

The Techemynt team has written a tweetstorm to explain the nitty gritty of the migration process.

https://twitter.com/techemynt/status/1582212194497753088

Liquidity Providers for the NZDS/USDC pool will have to unstake their LP tokens from DFX V1 and restake them on DFX V2. As the Tweetstorm explains this is an intuitive process, however, if you have any questions about the steps please do tweet at us at https://twitter.com/techemynt. Current V1 staking rewards have now ended, and the new epoch is expected to begin with the next 48 hours, so please make the transition to V2 at a time convenient to you.

This upgrade requested a community vote via Snapshot regarding a potential deployment and introduces various new features / improvements:

• Flash Loans: allows users to borrow uncollateralized assets in each of the pools as long as the liquidity is deep enough. The loan must be returned in the same transaction with a protocol fee. All fees generated by the flashloan functionality are directly sent back to the protocol’s treasury.
• Factory pools, for a more permissionless DFX: factory pools are “permissionless” pools which anybody can deploy and operate. In v1 producing new pools was a very permissioned and tedious process but with v2 the process has been streamlined and users also have the option to use the oracle of their choice not restricted to Chainlink (i.e.custom oracles).
• More efficient swaps: if the swap amount is relatively large compared to available liquidity, swapping token A for token B then swapping back the same amount of token B into token A results in slippage. An edge case but fixed in v2.
• Removal of the invariant check: v1 had an issue with liquidity providers not being able to deposit their desired amount of liquidity into a pool. Another edge case but fixed in v2.
• Users are now also able to exit liquidity pools in either both or just one of the underlying assets.
• veTokenoics: users will be able to lock up DFX tokens for veDFX and will be given governance rights – part of which will enable users to allocate yield to a pool of their choice. Read these tweets for more:https://twitter.com/techemynt/status/1582212206803841024?s=20&t=NkgUxhykN3hx4c0IBHIA-g & https://twitter.com/DFXFinance/status/1582424809920602112?s=20&t=cyM_E1AfYrEs93l1xU5T3Q

**DFX V2 is a separate and independent set of smart contracts. The community has voted positively for the deployment of v2, so liquidity providers have to fully exit their V1 position (unstake LPT and withdraw liquidity) then provide liquidity and stake on the new set of contracts. A small inconvenience but that means there’ll be super high APRs for a little while after the migration, because it’s essentially going to start fresh all over again! Aside from that, core features introduced will help the DFX Protocol stay relevant in the DeFi space as it’ll allow other DeFi protocols to integrate / leverage the protocol to theirs more easily.

Please note that this is the first stage of the V2 rollout and more information regarding veDFX is yet to come – stay tuned for more!

The protocols and businesses described above that interact with NZDS are not owned, managed or controlled by Techemynt and therefore Techemynt accepts no liability or responsibility in relation thereto. Investing in crypto involves risk – it is important that you undertake your own due diligence and fully understand the risks before making any investment decision.