Liquidity Migration: Will ApeSwap Ply Same Route?

The recent PancakeSwap liquidity migration brouhaha raised a lot of dust. What’s with the Uranium exploit that went down following the liquidity migration? It touched a lot of nerves, that’s for sure.

Since the PancakeSwap liquidity migration wasn’t as pleasant as expected, Apes and humans alike have been worried there might be such a catastrophe on ApeSwap should a liquidity migration happen in the jungle.
The last few days event has brought up questions bothering on ApeSwap liquidity: will there be a liquidity migration on ApeSwap Finance?

Understanding Liquidity Migration

For yield farming protocols like ApeSwap and PancakeSwap, liquidity pools provide an avenue for users to deposit their valued assets and earn a percentage of their deposit.

Depending on the smart contract guiding these protocols, an overwhelming amount of liquidity pools than it can handle poses a serious security risk, which explains the liquidity migration started by PancakeSwap.

Liquidity Migration isn’t safe either; users can attest to it. Moving liquidity pools from one smart contract to another which is exactly what this migration is all about makes them vulnerable.

A typical example of this in real life is how banks move money from one branch to another. Though banks might have all the security possible, once that cash hits on the road, it can go all up in smoke. Thus, they introduced bullion vans to shield the money while it is on transit, yet safety isn’t assured.

Is ApeSwap Looking to Migrate Liquidity Pools in the future?

It’s all down to their smart contract. If ApeSwap Finance has a robust smart contract that can handle the growing number of liquidity pools, then a liquidity migration shouldn’t happen.

The undoing of PancakeSwap that resulted in a liquidity migration was their unpreparedness for the amazing patronage they got. They are like the proverbial kin that wasn’t prepared for leadership, yet he was crowned king. Initially, the entire situation might be beyond him, but proper guidance should help put him in the right direction. Remember the PancakeSwap Finance DOS attack; what sort of yield farming protocol gets hit with a DOS attack?

Should ApeSwap Finance require a liquidity migration, then we’re confident they must have learnt from the PancakeSwap liquidity migration errors. This should guarantee a less chaotic situation that doesn’t subject partner projects to the massive risk we witnessed from the PancakeSwap liquidity migration.

Besides the risk, the liquidity migration that took place on PancakeSwap Finance subjected users to great discomfort. Imagine staking your LP tokens, and not checking it for weeks, then coming back to your earnings still at the same level due to the migration exercise. There’s also the considerably gas fees that go into dismantling your LPs from V1 and combining them for V2. It’s a mess most users of PancakeSwap Finance won’t forget in a hurry.

Final Thoughts

The PancakeSwap liquidity migration drama made one thing clear: the DeFi platform is incapable of being the go-to yield farming protocol on BSC. Users shouldn’t have to put up with a shoddy liquidity migration as seen on PancakeSwap Finance. Fortunately, there are viable options like ApeSwap, ready to serve with much less baggage.

For more information about this project you can see it below:

ApeSwapFinance App: https://apeswap.finance/
Medium: https://ape-swap.medium.com
Twitter: https://twitter.com/ape_swap
Telegram: https://t.me/ape_swap
Announcements: https://t.me/ape_swap_news
AUTHOR
Bitcointalk Profile: https://bitcointalk.org/index.php?action=profile;u=2366155;sa=summary
Bitcointalk Username: Asgard124
Wallet Address: 0x179057838Fe65565fd46B05f0B0FA9C362dE26b4