Seamless Transition to Sonic V3: Auto-Migration of DAO Liquidity Pools

With the launch of Sonic V3, the next generation of decentralized exchange on the Internet Computer blockchain, we are introducing groundbreaking upgrades to enhance the efficiency, functionality, and scalability of our liquidity pools. Sonic V3 is designed to provide an improved user experience, reduce volatility, and foster sustainable liquidity for all participants in the ecosystem.

As part of this transition, we are rolling out a DAO liquidity pool (LP) auto-migration tool to ensure the smooth migration of all existing DAO LPs from Sonic V1 to V3. This blog explains the migration process, the steps we are taking to ensure transparency, and how this transition benefits the entire Sonic community.

Why Migrate to Sonic V3?

The migration from Sonic V1 to V3 is critical to providing users and DAOs with:

1. Enhanced Functionality: The upgraded platform delivers a more robust trading environment, optimizing liquidity management and user experience.
2. Improved Efficiency: Reduced slippage and faster transactions, thanks to upgraded infrastructure.
3. Future Expansion: V3 serves as a foundation for introducing more advanced features and scaling the Sonic ecosystem.

Automated Migration Process

To ensure minimal disruption during the transition, we have developed a new automated migration tool. This tool is designed to simplify and streamline the migration process, enabling the Sonic team to move existing DAO LPs seamlessly from Sonic V1 to V3.

Key Details About the Migration:

• Temporary Custody: During the migration process, control of the liquidity pools will be temporarily transferred to Sonic Infrastructure’s keeper wallet.
• Restoring Control: Once the migration is complete, full control of the liquidity pools will be returned to the respective DAO governance canisters.
• Seamless Execution: The entire process will be carried out securely, ensuring there is no disruption to the DAOs or liquidity pool users.

Benefits of Auto-Migration

• Smoother Liquidity Management: The migration tool ensures a hassle-free transition with minimal manual intervention.
• Enhanced Liquidity Pools: Sonic V3 provides better infrastructure to support your DAO’s liquidity pools.
• Stronger Ecosystem: By migrating to V3, your DAO will be part of a more robust and future-ready decentralized finance ecosystem.

The launch of Sonic V3 marks an exciting new chapter for the Sonic ecosystem and the Internet Computer blockchain. By approving this migration, DAOs can take full advantage of the improved features and stability offered by V3 while contributing to the long-term success of decentralized finance on Sonic.

Thank you for your continued trust and support in Sonic.

— The Sonic Team