We’ve officially launched Liquid Farming V2 — a major upgrade that brings smarter position management, stronger protections, and improved efficiency under the hood. Here’s what’s new and why it matters for you.
The Key Update – Smarter Vault Positioning
The biggest change in V2 is how your position in the vault is managed.
Previously, the position stayed static after you deposited your tokens. In V2, the position automatically adjusts whenever new tokens are added — keeping it within the most efficient price range while maintaining your desired token ratio. This makes your liquidity work better for you, with less manual rebalancing and fewer missed opportunities.
This new logic was thoroughly tested during the audit and proved valid, with a few improvements added for extra safety and performance.
Additional Improvements
1. Cleaner, More Efficient Code
Some parts of the protocol were optimized:
- Redundant or unused function calls were removed.
- Storage gaps were added to allow safe future upgrades.
This makes the protocol leaner and more upgradeable.
2. Price Manipulation Protection (TWAP)
In the old version, we relied on the slot0() price from Uniswap pools — which could be manipulated using flash loans.
In V2, we’ve implemented TWAP (Time-Weighted Average Price) logic using the pool’s built-in observation data. Now, the vault checks for price deviations over time and adjusts accordingly. This makes it virtually impossible to trick the protocol into making bad trades with fake prices.
3. Reentrancy & Edge Case Protections
We’ve added:
- A reentrancy guard to the liquidate() function, which protects ETH transfers to users during liquidation.
- A fix for a rare edge case where extremely low input amounts could result in zero lWRAPPED tokens being minted — which previously broke reward tracking for those users.
What This Means for You
- More reliable yield: Vaults now adapt to market conditions and optimize automatically.
- Stronger protection: New security layers protect your funds from manipulation or unexpected bugs.
- Future-proof: The upgraded structure allows for smoother upgrades down the line.
We’re excited to bring you this next evolution of Liquid Farming — a more intelligent, secure, and efficient way to put your tokens to work.
About Algem
Algem is a decentralized application built on Astar Network and Soneium offering two main features: Liquid Farming and Liquid Staking. As the names suggest, these two options let ASTR and ETH holders keep their assets liquid while putting them to work. Liquid Farm or Liquid Stake with Algem’s Cross Chain platforms from Soneium or Astar Network and earn multiple rewards in the process. With Liquid Farming you’ll get a liquid lfETH fully redeemable token, in exchange for your ETH deposit to utilise this across the Soneium ecosystem all whilst earn farming fees and accruing Algem’s Native token ALGM in the process. In Liquid Staking, you’ll earn rewards that are automatically compounded with the Reward bearing xnASTR token for APR Yield in a simplistic way offering you peace of mind.
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