Hello Bunny Fam 🐰🐰🐰
A handful of users staking in the Single Asset Vault, particularly the BTCB pool, had been experiencing decreased profits. This is due to low levels of liquidity on related pools on PancakeSwap and slippage that occurred when relevant smart contracts interacted with the pools.
Given the schedule at which PancakeSwap implemented their V2 upgrade, and the immutable nature of some of our smart contracts (including SAV), we were unable to perform necessary updates, which caused the aforementioned issues.
To resolve the current issues, we are taking the following actions:
- We will auto-migrate all pools that swap XVS to the underlying token to Pancakeswap V2.
a. BNB, BTCB, ETH will be auto-migrated in the next few days
b. The Current Market Liquidity for USDT, BUSD single asset is very low (Bunny takes up around 75% of Venus’s entire supply of USDT and BUSD), thus making migration very difficult. (currently, we aren’t experiencing issues with decreasing profits in these two pools, so we will try to implement changes in the future.
- We will be changing the Venus farming leverage from 5x to 2.5x (the collateral ratio will be changed from 80% back down to 60%)
- Our team will be covering the remaining migration expense out of pocket for the community’s benefit. Venus implemented an additonal fee last month, and we estimate that this will cost around $260,000.
Keep in mind that even if auto-migration is complete, if the actual profits from XVS is sold at a lower price than the theoretical value, depending on market conditions, a decrease in profits may still occur.