Should Dypius Do a Token Migration to Upgrade the Smart-Contract for the Bridge and other related products?

6 min readOct 17, 2023

We have initiated a crucial governance vote to determine whether a token migration is in the best interest of $DYP, our native governance and utility token. In this article, we explore the reasons behind this proposal and the potential advantages it holds for the Dypius ecosystem.

The Need for Token Migration

We believe that Dypius would benefit from a token migration. This would help in fixing the price gap of DYP between the chains and enable us to launch an improved version of our bridge, facilitating expansion to other chains in the future. This move would attract new users to the Dypius ecosystem.

The Role of DYP in the Ecosystem

$DYP is a utility token that provides the foundation for the Dypius ecosystem within a decentralised platform that focuses on scalability, security, and global adoption.

Ethereum DYP ERC20 contract address can be verified here:

https://etherscan.io/token/0x961C8c0B1aaD0c0b10a51FeF6a867E3091BCef17

BNB Chain DYP BEP20 contract address can be verified here:

https://bscscan.com/token/0x961c8c0b1aad0c0b10a51fef6a867e3091bcef17

Avalanche DYP ARC20 contract address can be verified here:

https://snowtrace.io/token/0x961c8c0b1aad0c0b10a51fef6a867e3091bcef17

The DYP token was initially launched exclusively on the Ethereum blockchain in October 2020. During that time, the team had no plans to expand to other chains, and as a result, the tokenomics and smart contract were specifically designed for the Ethereum chain. However, the rapid growth in the following months and increasing demands from our users prompted our team to take action and explore new solutions. Consequently, in less than six months since its initial launch, we successfully expanded to the BNB Chain in April 2021 and to Avalanche Chain in July 2021.

More than three years have passed since the token’s launch, and DYP tokens can now be traded on various exchanges as ERC20 (Ethereum), BEP20 (BNB Chain), and ARC20 (Avalanche Chain). We will only refer to some of the largest centralised exchanges (CEX) where DYP is being traded: Coinbase, Huobi Global, KuCoin, Gate.io, MEXC Global, and many others. Unfortunately, our current smart contract architecture does not support a bridge between DYP ERC20 <> DYP BEP20. Furthermore, based on the demand, user base, and liquidity of each exchange, there is a price gap between DYP as ERC20 and DYP as BEP20/ARC20. Right now, DYP as ERC20 is trading at $0.1184, while DYP as BEP20/ARC20 is trading at $0.01800. This discrepancy can be confusing for users, who may struggle to understand why the same token is trading at different prices.

The price gap between DYP as ERC20 and DYP as BEP20/ARC20 started shortly after listing on Coinbase when all the DYP ERC20 liquidity from our old bridge was removed by the users. Users had deposited DYP as BEP20 and ARC20 for DYP as ERC20. Since we don’t have a ‘Mint function,’ we cannot create new tokens, and liquidity was limited. Over the past 12 months, the price gap has continued to increase, causing uncertainty within our community and likely resulting in a loss of many users. Despite various attempts to reduce the price gap, such as adding a secondary market maker for exchanges where DYP as BEP20/ARC20 is traded, introducing more utility for DYP as BEP20, launching different campaigns for DYP as BEP20, and more, the situation has not improved. After over a year of exploring various approaches, we have concluded that the only viable solution to rectify this situation is a smart contract migration for the bridge.

Proposed Token Migration

If this governance proposal is approved, the DYP V2 main smart contract will be deployed on the Ethereum blockchain, similar to the current DYP smart contract, without any alterations to the code. Only the bridge and the DYP V2 from BNB Chain and Avalanche have been upgraded. Right now, our smart contracts are undergoing security audits by CertiK and PeckShield, and we anticipate having the audit reports available later this week. Below, you can find some technical details regarding the changes we have implemented:

Back in October 2020 we have developed our main DYP ERC20 token contract, which was:

https://etherscan.io/token/0x961C8c0B1aaD0c0b10a51FeF6a867E3091BCef17

Based on this contract we have also developed our Bridge solution on April 2021:

With this bridge, users were previously able to bridge tokens between Ethereum and BNB Chain using a Lock and Release mechanism. We have recently enhanced and modified our mechanism, so in the new contracts, the bridge will continue to Lock and Release tokens on the Ethereum side. However, on other chains like BNB Chain, it will Mint and Burn when users deposit and withdraw from the bridge.

Swap Ratios

Considering that currently there is a price gap of ~ 6x between DYP ERC20 and DYP BEP20/ARC20, the swap ratio for DYP V2 will vary depending on the respective blockchain.

1 DYP ERC20:6 DYP ERC20 V2
1 DYP BEP20:1 DYP ERC20 V2
1 DYP ARC20:1 DYP ERC20 V2
30,000,000 DYP ERC20:180,000,000 DYP ERC20 V2
24,963,431 DYP BEP20:24,963,431 DYP ERC20 V2
24,963,431 DYP ARC20:24,963,431 DYP ERC20 V2

Based on the above swap ratio, the total supply of the DYP V2 on Ethereum will be 229,926,862. It is important to understand that this wouldn’t dilute anyone’s current DYP position. Also, like the current DYP contract the supply remains fixed, no more tokens can be minted in the future. The total supply and the swap ratios are not final. The above data is used for illustration purposes only!

NOTE: Please be aware that the final snapshot for the swap ratio based on the price will be communicated by the team after the conclusion of the governance proposal in three days. This information will not be shared beforehand to prevent potential bad actors from attempting to manipulate the DYP price.

Governance Proposal

The governance proposal is open to DYP holders on Ethereum, BNB Chain, and Avalanche. To cast your vote in favour of the migration, please select “Yes,” and if you wish to vote against the migration, please choose “No.”

Governance Proposal: https://app.dypius.com/governance

Timeline and Automatic Burn

If this governance proposal is approved, the next step will be to launch the new contracts once the security audits are completed. All DYP holders will be required to convert their DYP v1 tokens into DYP v2 using our conversion contract, which will be made available before the migration begins.

For the centralised exchanges (CEXs) that will support the migration, the swapping process will be executed automatically. We have already reached out to all the CEXs where DYP is currently traded, and we are hopeful that they will all support the migration.

In the event of a successful migration, all existing staking contracts will be terminated, and new contracts related to staking and other products will be introduced.

Please be aware that all DYP v1 tokens that are swapped will be automatically burned. Users will have an indefinite period of time to complete the swap of their DYP v1 for DYP v2. If required by any CEX, we will also offer manual support for the migration.

While we strongly believe that Dypius would greatly benefit from a token migration, it’s essential to note that if the governance proposal does not receive approval, the migration will not take place. If the proposal passes, Dypius will provide more details about the process and next steps.At this moment, there is no immediate action required, only the need to cast your vote in support of the above governance proposal.

About Dypius

Dypius is a powerful, decentralized ecosystem with a focus on scalability, security, and global adoption through next-gen infrastructure. We offer a variety of products and services that cater to both beginners and advanced users in the crypto space including DeFi solutions, analytical tools, NFTs, Metaverse and more!

The protocol’s token, DYP, is listed on top-tier exchanges, such as Coinbase, Huobi Global, KuCoin, Gate.io, MEXC Global, Poloniex, and others.

Should Dypius Do a Token Migration to Upgrade the Smart-Contract for the Bridge and other related products?

Written by Dypius

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