# RFC #3: Proposal for Protocol Upgradability and LP migration to custom made Wagmi V4 model **URL:** \ **Category:** \[RFC\] Request for comment\ **Created:** [December 26, 2023, 1:55pm UTC](https://forum.wagmi.com/t/rfc-3-proposal-for-protocol-upgradability-and-lp-migration-to-custom-made-wagmi-v4-model/156 "2023-12-26T13:55:51Z")\ **Posts on this page:** 10\ **Page:** 1
**Author:** ![anita](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.wagmi.com/anita/32/47_2.png) [@anita](https://forum.wagmi.com/u/anita)\ **Post date:** [December 26, 2023, 1:55pm UTC](https://forum.wagmi.com/t/rfc-3-proposal-for-protocol-upgradability-and-lp-migration-to-custom-made-wagmi-v4-model/156/1 "2023-12-26T13:55:51Z")
**RFC #3: Proposal for Protocol Upgradability and Liquidity Migration to Custom made Wagmi V4 Model** **Introduction:** The WAGMI DAO is proposing for a strategic upgrade of our protocol. We propose an upgradability strategy that includes development of a new Liquidity Pool (LP) system - the custom-developed Wagmi V4 model, transitioning from the existing V3 model that allows us to migrate liquidity and treasury to improved V4 model. **Rationale for Development and Migration to V4:** 1. Greater Customization: • The V4 model introduces “Hooks” for creating unique pool designs, allowing for innovative and tailored liquidity management strategies. 2. Enhanced Efficiency: • Improved transaction routing and cost optimizations in V4 promise more efficient trade execution, benefiting both the protocol and its users. 3. Reduced Gas Fees: • The V4 model employs Singleton smart contracts and refined accounting methods to significantly cut transaction costs, enhancing economic efficiency. 4. Increased LP Revenue: • V4’s dynamic fee structure adapts to market conditions, offering the potential for higher returns to liquidity providers. 5. Flexibility for Launching on New Chains: • The V4 model facilitates the WAGMI DAO’s expansion onto additional networks, enabling treasury migration into new V4 style LPs. **Implementation Strategy:** 1. Technical Assessment: • Review existing contracts and LPs. • Evaluate the impact and advantages of migrating to V4. 2. Development and Security: • Develop required smart contracts for the transition. • Focus on security to protect assets during migration. 3. Phased Implementation: • Implement migration in stages for stability. • Continuously refine V4 strategies for optimal performance. **Conclusion:** This proposal aims to position WAGMI DAO as a DeFi innovation leader. By developing the Wagmi V4 model, we can utilise its advanced features for enhanced performance and user advantages. We seek community feedback to ensure a successful transition. **Next Steps:** • Collect community feedback and suggestions. • Finalize migration strategy based on community insights. • Initiate technical development and execution. We eagerly await your valuable insights and support in this significant upgrade. Following community feedback, a snapshot vote will be held to decide on the implementation. **WAGMI DAO** Edit number 1: Adding clarification that treasury is currently team funded and no protocol owned LPs will be used for funding the development. Major point of doing it is to prepare liquidity infrastructure for hooks that are coming to AMM space. ---
**Author:** ![cryptopleb4](https://avatars.discourse-cdn.com/v4/letter/c/ecd19e/32.png) [@cryptopleb4](https://forum.wagmi.com/u/cryptopleb4)\ **Post date:** [December 26, 2023, 3:00pm UTC](https://forum.wagmi.com/t/rfc-3-proposal-for-protocol-upgradability-and-lp-migration-to-custom-made-wagmi-v4-model/156/2 "2023-12-26T15:00:16Z")
I think there’s not much for the community to comment on here. The rationale mentions 5 great improvements and its unclear to me how we can suggest anything for the implementation strategy. The proposal looks great overall and i suggest we move forward with the snapshot asap! ---
**Author:** ![go-to-ur.ano](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.wagmi.com/go-to-ur.ano/32/7_2.png) [@go-to-ur.ano](https://forum.wagmi.com/u/go-to-ur.ano)\ **Post date:** [December 26, 2023, 5:16pm UTC](https://forum.wagmi.com/t/rfc-3-proposal-for-protocol-upgradability-and-lp-migration-to-custom-made-wagmi-v4-model/156/3 "2023-12-26T17:16:07Z")
I agree, as long as the stability of the chain will be guaranteed. ---
**Author:** ![burstingbagel](https://avatars.discourse-cdn.com/v4/letter/b/9f8e36/32.png) [@burstingbagel](https://forum.wagmi.com/u/burstingbagel)\ **Post date:** [December 28, 2023, 5:47am UTC](https://forum.wagmi.com/t/rfc-3-proposal-for-protocol-upgradability-and-lp-migration-to-custom-made-wagmi-v4-model/156/4 "2023-12-28T05:47:06Z")
All good upgrades but I think a major feature that is missing is GMI not being shared across chains. Ideally, GMI is an index for fees generated across all chains and the user doesn’t have to bet on which chain’s GMI will perform the best. Also, will liquidity that resides in pools with hooks be able to be bonded into GMI? For example, I assume the leverage feature that you plan on shipping is a hook. Can this be bonded into the treasury instead of the liquidity in the standard CL management strategies? ---
**Author:** ![fierydev](https://avatars.discourse-cdn.com/v4/letter/f/9fc348/32.png) [@fierydev](https://forum.wagmi.com/u/fierydev)\ **Post date:** [December 30, 2023, 3:49am UTC](https://forum.wagmi.com/t/rfc-3-proposal-for-protocol-upgradability-and-lp-migration-to-custom-made-wagmi-v4-model/156/5 "2023-12-30T03:49:07Z")
In v4, will GMI holders share fee from all chains? Or will that remain chain specific? ---
**Author:** ![anita](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.wagmi.com/anita/32/47_2.png) [@anita](https://forum.wagmi.com/u/anita)\ **Post date:** [January 1, 2024, 7:53pm UTC](https://forum.wagmi.com/t/rfc-3-proposal-for-protocol-upgradability-and-lp-migration-to-custom-made-wagmi-v4-model/156/6 "2024-01-01T19:53:09Z")
As with all WAGMI products we aim to provide as much decentralization as possible hence we do not control the fees so they are not routed though DAO controlled contracts where we can divert on how they are distributed. The team is working on a “volunteer” type of contract which will enable crosschain distribution and will support external teams providing “convex” like solutions. ---
**Author:** ![anita](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.wagmi.com/anita/32/47_2.png) [@anita](https://forum.wagmi.com/u/anita)\ **Post date:** [January 1, 2024, 7:57pm UTC](https://forum.wagmi.com/t/rfc-3-proposal-for-protocol-upgradability-and-lp-migration-to-custom-made-wagmi-v4-model/156/7 "2024-01-01T19:57:04Z")
If someone will build a hook that will provide the leverage as we want it we will be able to whitelist the liquidity to be used for leverage after migration. We will work on such solutions as well. ---
**Author:** ![Fakest](https://avatars.discourse-cdn.com/v4/letter/f/e9bcb4/32.png) [@Fakest](https://forum.wagmi.com/u/Fakest)\ **Post date:** [January 2, 2024, 8:56pm UTC](https://forum.wagmi.com/t/rfc-3-proposal-for-protocol-upgradability-and-lp-migration-to-custom-made-wagmi-v4-model/156/8 "2024-01-02T20:56:13Z")
I’m lovin It! 🍟 Good proposal, nice to see some reaction! ---
**Author:** ![Mark](https://avatars.discourse-cdn.com/v4/letter/m/e9c0ed/32.png) [@Mark](https://forum.wagmi.com/u/Mark)\ **Post date:** [January 3, 2024, 11:37am UTC](https://forum.wagmi.com/t/rfc-3-proposal-for-protocol-upgradability-and-lp-migration-to-custom-made-wagmi-v4-model/156/9 "2024-01-03T11:37:01Z")
I fully support this proposal. This will make us ready for the future. ---
**Author:** ![anita](https://dub1.discourse-cdn.com/flex005/user_avatar/forum.wagmi.com/anita/32/47_2.png) [@anita](https://forum.wagmi.com/u/anita)\ **Post date:** [May 22, 2024, 11:08am UTC](https://forum.wagmi.com/t/rfc-3-proposal-for-protocol-upgradability-and-lp-migration-to-custom-made-wagmi-v4-model/156/10 "2024-05-22T11:08:48Z")