What happened
Since BabySwap migrated their Masterchef contract to V2, users that have assets on our Sweet Vaults that stake their Masterchef V1 contract have been unable to withdraw funds. This happened because they have transferred the ownership (therefore, minting rights) from V1 to V2, and now V1 isn’t able to mint tokens anymore.
The withdrawal transaction will always fail because, in the withdraw function of BabySwap’s v1 Masterchef, it tries to mint funds, and since it doesn’t have ownership of the Baby token contract anymore, it fails.
This issue was caused by the migration design chosen by BabySwap’s end, which is time-dependent. This migration design fails to consider that Paçoca had more than $160.000 deposited there through other immutable smart contracts that wouldn’t be able to withdraw if the function they were calling failed due to the ownership being removed.
This is a significant issue, but don’t worry since there are options on the table for BabySwap to take action and allow BabySwap to grant access back to the liquidity providers who had their funds locked.
What can be done
Here are some of BabySwap’s options when it comes to being fair to the users and unlocking their liquidity:
- BabySwap can follow the same migration steps as ApeSwap did, which is keeping the ownership of the token in the v1 contract and having a single “dummy token” pool that emits all rewards to the Masterchef v2/v3 contract. This is the best way to do it because everyone will still be able to migrate without a time deadline.
- BabySwap can schedule a date for withdrawals to take place and migrate the ownership of the contract for something like a weekend. This way all users are previously informed of the withdrawal requirement and will have time to act.
- BabySwap leaves the funds locked forever and refunds the users with the dollar amount they have locked in BabySwap’s v1 Masterchef.
Conclusion
The Paçoca team is doing everything in their power to grant users access back to their tokens. However, it’s important to understand that only BabySwap has the power to resolve this issue. Please spread the word to the BabySwap community and encourage them to find a solution as soon as possible for the best of both communities.
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