PoS Merge Note: LPs do not have to withdraw, nothing to do

TLDR on what this topic is about

LPing in Gearbox is basically a retroactive GEAR rewards farm right now, to keep pools liquid for the launch of V2 beginning of October. Pools in V2 will stay the same, and you will also get merge PoW (W)ETH - so no need to remove liquidity. In fact, closer to the beginning of October, actual Liquidity Mining will begin with proper GEAR rewards for passive LPs to earn. Stay tuned for that!

Note 1 on the PoS merge: ETH LPs will get PoW (W)ETH, so no need to withdraw.

Aave and other protocols have issued statements on how merge could affect them, whereas some protocols have stopped ETH borrowing and others adjusted utilization curves. It’s very interesting to read, but as for Gearbox - there are no complexities or to-do urgencies.

  • First of all, Gearbox V1 has 4 pools, whereas 3 of them won’t be “supported” on PoW by their issuers (DAI, USDC, WBTC). So there is nothing to gain by playing this game. On the PoS chain, it would all function as normal. Stay put and safu!
  • Secondly, for the ETH pool: the assets you have in there are technically supplied as WETH. You can simply withdraw them on the PoW chain if you want to play the fork game, and swap to PoW ETH. WETH is not like a Uniswap liquidity pool, and is instead guaranteed as 1:1.

TLDR: no need to remove liquidity, it’s SAFU. You shall likely get PoW-WETH and can swap it.

To be exact, less than 100 out of 1,700 WETH currently supplied - might not be able to get the PoW-WETH (unless those Credit Accounts get closed before merge) as Gearbox will become a brick on PoW chain same like pretty much every other DeFi Protocol. That is less than 6% of the pool, and no new accounts shall be open in V1. So it’s practically a non-issue. However, be careful of replay attacks if you are trying to interact with PoW as the PoW “team” has been showing signs of bad behavior and shady practices.

As for the Credit Accounts: in V1 you can’t open any new ones or borrow more capital. If you have Credit Accounts open, it makes sense to close them quickly or slowly - up to you. The V1 is essentially being deprecated as V2 is expected very soon.

As for the PoW side of Gearbox, it simply can’t be supported (as such, no DAO vote) as Chainlink will stop supporting oracles on PoW. Therefore, most of the protocol operations on the PoW will be bricked as no collateral checks or swaps can happen. The same issue is true for most protocols actually, as Chainlink oracles are currently the most widespread and safu.

Note 2 on modularity: in V2, pools stay the same, so no need to withdraw.

This is why we are saying to not worry about your current passive earning deposits (diesel dTokens). They will not be changing in V2, because Gearbox Protocol is modular. That is, there is no need to redeploy everything with new versions or upgrades. DAO can decide to take things in-and-out, like a literal engine!

However, Credit Managers (the sticking glue in-between controlling collateral checks, loans, and so on) will be changing pending future DAO votes. TLDR: no need to remove liquidity.