Whats up Blend Babies!
Blend V2 audits wrap up in a week, so let’s go over what to expect once the protocol is officially complete.
Migration Process:
The Blend V2 migration is like a fork. The new Blend V2 protocol and its pools will be deployed and lenders, borrowers, and backstoppers can immediately start using Blend V2. The BLND token will not change, and Blend V1 will remain operational so there’s no rush. An emissions fork (or backstop swap) can be performed that moves BLND emissions from Blend V1 to Blend V2. This can be initiated once Blend V2 has more backstop deposits than Blend V1, then after a 31 day timelock, emissions will be sent to Blend V2 instead of Blend V1. To make this process smoother, Blend V2 will track up to 10m BLND in emissions it would have received during the migration period. If the emissions fork is successful, these emissions can then be claimed.
“Ok that all makes sense, but what does it mean for me?”
Lender and Borrower Migration
Lenders and borrowers can move to Blend V2 as soon as they deem it suitable. This will likely be when the pools and assets they use have been added to Blend V2. We should note — the level of insurance in Blend V1 will steadily decrease as backstop depositors migrate to the new protocol. In addition, once V1 pools start to drop below the minimum backstop requirement borrowing and depositing may be disabled in them USERS ABILITY TO REPAY LOANS OR WITHDRAW FUNDS WILL NOT BE AFFECTED. In addition, lenders and borrowers may see interest rate volatility as other lenders and borrowers migrate to V2.
Backstop Migration
Backstop depositors can queue their funds for withdrawal from V1 and deposit them in V2 as soon as they wish (likely whenever a pool they want to backstop appears in V2). Backstop depositors should be aware that once the majority of them migrate, and the emissions fork completes they will stop receiving emissions in V1, so they may want to migrate before that happens.
Wallets and Integrators
As we mentioned earlier, V1 will remain operational. So there’s no reason to rush your migration. I would suggest a migration strategy of adding a “Migrate to Blend V2 and receive x interest” call to action that allows your users to withdraw from Blend V1 and deposit into Blend V2 (2 separate transactions). This way the users get to decide when to migrate. From a technical perspective the integration won’t have changed at all — the interface to process user deposits and withdrawals is the same, you’ll just need to update the contract address.
With the launch of Blend V2 wallets will now also finally have access to the Blend Fee Vault which allows integrators to earn a portion of interest from their user’s deposits in an entirely noncustodial fashion.
See the github or reach out to Script3 for more information:
https://github.com/script3/fee-vault
gm@script3.io
“How will I be able to Access Blend V2?”
Both Blend V1 and V2 will be available via the Blend webapp. You can see what the post-v2 website will look like right now by visiting https://testnet.blend.capital/
“What Actually Changed in Blend V2?”
Very little! Let’s go over it:
- Flash Loan Support:
Blend V2 adds flash loans! Flash loan consumers like arbitrage bots and DeFi protocols can now flash borrow from Blend by calling the flashloan() function. https://github.com/blend-capital/blend-contracts-v2/blob/main/pool/src/contract.rs#L152 - More Pool Parameters:
Pool creators can now add collateral caps, and have the ability to safely disable assets. - Easier Integrations:
Smart Contracts interacting with blend can now utilize the new submit_with_allowance()function to help them manage user positions and also have better access to internal data thanks to the get_reserve()function - More assets in pools:
Pool creators can now create pools with up to 50 assets! - Better Liquidations:
Liquidators now have more flexibility when creating liquidations in the pool, allowing them to create more competitive and safer liquidation auctions. - Optimizations:
Various improvements have been made to the protocol to help reduce fees and increase usability, like allowing leveraged positions to be unwound in a single transaction!
“Where Can I Learn More?”
We’ll release V2 docs at some point, but for now you can check out the V2 Github here: https://github.com/blend-capital/blend-contracts-v2 or join the discord here: https://discord.gg/8EY6HZ97
