Migration #7 is Coming
As guided by a UNIFI Referendum, this migration is for liquidity providers only!
Key Points
- Participants must carefully examine this migration’s details to ensure their eligibility to participate. Ineligible participation or violating the terms and conditions described in this article will cause a loss of tokens. Potential migration participants should read and understand this entire document, all terms, conditions, and attachments before proceeding. No refunds can be, or will be, provided for any reason. This includes ineligible or incorrect participation.
- Migration#7 was created by Unifi in response to the specifications chosen by UNIFI holders participating in community governance.
-This migration is ONLY for uTrade liquidity providers who have claimed UP.
- Migration#7 will open on May 31st, 2021 and close on June 4th, 2021.
- There will be 1000 UNIFI available for this migration.
Migration Series launched in response to UNIFI referendum vote
In April 2021, Unifi posted its first Core Referendum to be voted on by UNIFI holders. The topic of the referendum was UP to UNIFI migration. Migration allows liquidity providers on Unifi blockchains to participate in Unifi’s Global Governance Model (GGM), powered by UNIFI
The style for migration #7 was decided by the GGM through the action of UNIFI token community voting. In a different Core Referendum, approximately 69% of participating UNIFI holders voted to have migration #7 only open to uTrade liquidity providers. The details for the migration as outlined in this article were guided by this voting action of the UNIFI GGM.
What is migration?
Migration is the process of sending UP tokens to the Unifi Protocol. Those UP tokens are then burned. Based on the details of that specific migration, participants are then allowed to claim an amount of UNIFI tokens.
Why is migration needed?
UP is the blockchain-specific liquidity farming token earned as a reward for liquidity providers. UP earned can then be migrated to UNIFI to give access to the UNIFI Proof of Stake ecosystem. This includes UNIFI holders having a meaningful voice in the GGM and earning UNIFI staking rewards as well as liquidity rewards.
More on the differences between UP and UNIFI can be found on Unifi’s Medium, or in this article on Tokens of the Unifi Ecosystem.
What are the steps to participate?
In the migration dashboard, input how much UP is to be contributed into the migration process. Provide the Ethereum address where you will want to claim the UNIFI. Participants will be able to claim their UNIFI at https://gov.unifiprotocol.com using the ETH address they had submitted. The user must have an Ethereum wallet that is compatible with Unifi (such as MathWallet or MetaMask) that can access and transact with that address using the private key. Information on supported wallets can be found here.
Note: UNIFI will need to be claimed using that address and will not be automatically distributed. ETH will be required to cover the Ethereum network cost of claiming the UNIFI.
If a participant attempts to contribute UP after the event is closed, the UP will remain in their wallet. This may still trigger a transaction fee to be charged by the blockchain. Therefore participants are encouraged to participate early in the event.
UNIFI will be claimable after the close of the event and the results are processed. Efforts are made to make UNIFI claimable promptly, however no claim date is promised. Based on the unique structure of migration#7, a longer than average processing time may be required. An announcement will be made when the UNIFI is claimable on Unifi’s social media outlets. All participants are encouraged to join Unifi’s social media to ensure they have the latest information on all migrations.
How will migration #7 work?
Migration#7 is being created in response to an action of the GGM, which voted on seeing a migration solely for uTrade liquidity providers. Development support to create migration #7 specific tools would cause long delays in the start of this migration. Migration #7 is the latest in a series of different options for requested migration types. Based on the results of this and other migration styles, this migration type may be supported by development resources in the future.
For migration #7, participants can find information they need related to their UP claims in the user history of their wallet, or on the block explorer of their choice. Participants are only eligible to participate with the amount of UP they have claimed on uTrade from providing liquidity. The UP for migration must be contributed from the address where UP was claimed. Any UP contributed from an address where no UP has been claimed, or participating with more UP than has been claimed by that address, will cause a loss of tokens.
Starting on May 31, 2021, UP holders will go to https://unifiprotocol.com/ and select the blockchain on which their UP tokens reside. In the UP tab of the uTrade app, there will be an option for UP to UNIFI Migration. Ensure the wallet address with the UP tokens is connected to uTrade.
The event will conclude on June 4, 2021. No exact open and close times for migration are being announced. Those that wish to participate are encouraged not to wait until the end of the given time period.
How is the ratio of UP to UNIFI discovered?
1. UP tokens on each blockchain will be assigned a USD equivalent value (USDEV) based on the redeem value of UP on that blockchain. USDEV is calculated by multiplying the redeem value of UP on that blockchain in base tokens by the USD market price of that base token on Binance.
2. Each UP contributed to the migration process creates a claimable amount of UNIFI that is in direct proportion to its percentage of total USDEV participating in the migration process by UP tokens on all Unifi blockchains combined.
Example
Let’s make some assumptions for the sake of this example. We will only be looking at two blockchains in this example for simplicity. Also assume 10,000 UNIFI tokens are available for the migration process in this example.
Assume UPbnb can be redeemed on uTrade for 8 BNB, and BNB is valued at $600 USD. Then each UPbnb would be assigned a USDEV of $4800. The total amount of UPbnb contributed to the migration was 1, making the total USDEV on BSC $4800.
Assume UPont can be redeemed on uTrade for 6 ONTd, and ONTd is valued at $2. Then each UPont would be assigned a USDEV of $12. The total amount of UPont contributed to the migration was 100, making the total USDEV on Ontology $1200.
The total USDEV contributed to the event from all blockchains was $6000. $4800 from BSC, and $1200 from Ontology. In other words, 80% of the total USDEV was from BSC migration, and 20% was from Ontology migration.
The amount of UNIFI available for this example UP to UNIFI migration is 10,000 UNIFI.
80% (8000 UNIFI) will go to participants on BSC, and 20% (2000 UNIFI) will go to participants on Ontology.
If someone contributed 0.2 UPbnb ($960 USDEV) to the migration process on BSC, that was 20% the total 1 UPbnb that participated (0.2/1). So they would receive 20% of the 8000 UNIFI for BSC, which is 1600 UNIFI.
If someone contributed 80 UPont ($960 USDEV) to the migration process on Ontology, that was 80% of the total 100 that participated (80/100). So they would receive 80% of the 2000 UNIFI for Ontology, which is 1600 UNIFI.
Notice how the user on BSC contributed $600 USDEV and the user on Ontology contributed $600 USDEV, so they each received the same amount of UNIFI. But due to market prices of the base tokens, it only required 0.2 UPbnb while it required 80 UPont for the same result. It is important to realize the final outcome will depend on how much UP is contributed in total on each blockchain. It will not be possible to determine these ratios until the conclusion of the migration process.
User errors which could cause a loss of UP and/or UNIFI:
1. Contributing more UP from an address than has been claimed by that address as liquidity provider rewards.
2. UNIFI for this event will be claimable as an ERC20 token on Ethereum. The participant must provide a valid Ethereum address where they can receive and interact with ERC20 tokens like UNIFI. Providing a Binance Smart Chain address, or address from any other blockchain, could cause a loss of UP and/or UNIFI. Unifi does not confirm or check addresses supplied. Invalid addresses (including those with an extra space in the address) will cause a loss of UP and/or UNIFI.
3. Incorrectly inputting the Ethereum address to receive UNIFI. Be careful for typos and missing/additional characters (including extra spaces).
4. The user must have the private key to the Ethereum address where the UNIFI is claimable. DO NOT use an Ethereum address of an exchange wallet.
Terms and Conditions
The migration process is still a beta utility and no result is guaranteed. Migrations and their details or conditions can vary. All participants should be certain they have read and understand the entire announcement prior to participating. The UP migration process is not reversible. All UP deposited into the migration will be burned. There is no way to reverse the migration process and no refunds are possible for any reason. Unifi can not retrieve UNIFI made claimable at an address where the user does not hold the private key. UNIFI requested to be made claimable at an invalid Ethereum address will be forfeit. Unifi is not responsible for any loss associated with the UP migration process, regardless of cause. Migrating UP to UNIFI is a voluntary action taken upon by the UP token holder, and the UP token holder assumes all associated risk of token loss.
The migration process is dynamic and governed by market forces. No ratio of UP to UNIFI is suggested, implied, or guaranteed. The final ratio of UP to UNIFI will be determined following the close of the migration period. UNIFI will be available for claim after the migration process has closed.
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