Bancor introduces Carbon DeFi’s new one-step migration feature.
Liquidity providers can now move existing positions from other major DEXs in a single transaction.
Enabled by support for EIP-7702 — which allows multiple onchain actions to be grouped and executed together — moving a position into Carbon DeFi is reduced to one step.
When a user connects their wallet, Carbon DeFi detects supported positions held across leading AMMs. From there, the entire flow is handled in a single atomic transaction.
The mechanics are straightforward. The more relevant question is why a liquidity provider would choose to move.
Fee Distribution
If you’re already providing liquidity on a major DEX, you’ve likely noticed that the economics of liquidity provisioning are getting more attention — particularly how trading fees are paid and distributed.
I break it down below, but the TLDR is this:
Traders pay a fee in both cases:
In Examples A and B, it’s 0.3%.
On Carbon DeFi, it’s 0.2%.
How that fee is distributed:
In Examples A and B, the LP chooses from preset tiers, and a portion is redirected away from the liquidity provider.
On Carbon DeFi, the strategy maker does not choose from a set of predefined fee tiers.
Instead, they set a custom fee tier, or spread, and retain it entirely.
Example A Key Fee Components
Of the fees listed below, 0.25% is allocated to liquidity providers as rewards for contributing liquidity, with 0.05% going to the protocol.
1. Swap/Liquidity Provider Fees (V2): The protocol implements a standard trading fee of 0.3% per trade. These are paid by traders to LPs for providing liquidity, proportional to their share of the pool.
2. While on v3 concentrated liquidity pools, liquidity providers have the option to set their fees at 0.01%, 0.05%, 0.3%, or 1%, depending on the pool.
Example B Key Fee Components
In both V2 and V3, the fee paid by traders is not affected. It affects the amount received by liquidity providers.
1. Swap/Liquidity Provider Fees (V2): The protocol implements a standard trading fee of 0.3% per trade. These are paid by traders to LPs for providing liquidity, proportional to their share of the pool.
Of the fees listed above, 0.25% is allocated to liquidity providers as rewards for contributing liquidity, with 0.05% going to the protocol.
2. Swap/Liquidity Provider Fees (V3): LPs choose from tiers: 0.01%, 0.05%, 0.30%, and 1%.
Protocol fees for 0.01% and 0.05% pools are set to 1/4th of LP fees.
For 0.30% and 1% pools, protocol fees are set to 1/6th of LP fees.
Carbon DeFi Key Fee Components
On Carbon DeFi, the amount received by the liquidity providers, or strategy makers, is not affected.
When a strategy maker creates a position, they set a custom spread (referred to above as the fee tier). The protocol adds 0.2% on top of that spread.
Strategy makers keep 100% of the spread with the added 0.2% allocated to Bancor for future protocol development.
Adjustable Positions
A second consideration is how positions are managed over time.
On many platforms, modifying a position requires withdrawing liquidity and recreating it entirely. This often involves multiple transactions, additional gas costs, and, in the case of concentrated liquidity, the burning and minting of an NFT representing the position.
That process works, but it can be cumbersome.
On Carbon DeFi, positions can be updated directly. Prices, liquidity, and even strategy types can be adjusted without withdrawing funds or recreating the position. Strategies can also be paused, removing the ability for others to trade against them.
This makes it possible to refine how a position behaves without rebuilding it.
Supported protocols
Migrating to Carbon DeFi supports positions across major AMM protocols, including:
- Uniswap V2 and Uniswap V3
- SushiSwap V2 and SushiSwap V3
- PancakeSwap V2 and PancakeSwap V3
Availability depends on environments that support EIP-7702, including MetaMask (web and mobile), and chains such as Ethereum and Base.
What changes after migration
The assets themselves remain the same.
What changes is how the position is structured.
On Carbon DeFi, each position defines its own spread. There are no preset fee tiers, and no portion of that spread is redirected to the protocol or token holders.
The strategy maker sets the terms.
The strategy maker keeps the outcome.
Positions can also be adjusted directly. Funds can be added or withdrawn, prices updated, strategies paused or resumed, and strategy types changed— all without withdrawing funds or recreating the position.
Closing
Carbon DeFi’s migration feature introduces a straightforward capability: moving an existing position into a different structure without rebuilding it.
From there, how that position is defined — and what it earns — remains entirely in the hands of the strategy maker.
Bancor
Bancor is a pioneer in decentralized finance (DeFi), established in 2016. It invented the core technologies underpinning the majority of today’s automated market makers (AMMs) and continues to develop the foundational infrastructure critical to DeFi’s success — focusing on enhanced liquidity mechanics and robust onchain market operation. All products of Bancor are governed by the Bancor DAO.
Website | Blog | X/Twitter | Analytics | YouTube | Governance
Carbon DeFi
Carbon DeFi, Bancor’s flagship DEX, enables users to do everything possible on a traditional AMM — and more. This includes custom onchain limit and range orders, with the ability to combine orders into automated buy low, sell high strategies. It is powered by Bancor’s latest patented technologies: Asymmetric Liquidity and Adjustable Bonding Curves.
Website | X/Twitter | Analytics | Telegram
The Arb Fast Lane
DeFi’s most advanced arbitrage infrastructure powered by Marginal Price Optimization, a new method of optimal routing with unmatched computational efficiency.
Website | Research | Analytics
Migrate Your Position. Set Your Spread. Keep 100%. was originally published in Bancor on Medium, where people are continuing the conversation by highlighting and responding to this story.
