WigoSwap to DeFive: Everything You Need to Know About DeFive and the Migration

7 min readDec 9, 2024

The migration of WigoSwap (WIGO) from the Fantom blockchain to DeFive (FIVE) on Sonic marks a monumental step forward for our ecosystem. This comprehensive blog post will guide you through everything you need to know about the transition. From understanding the reasons behind our rebranding to the technical and strategic upgrades driving DeFive, we’re laying the foundation for a more innovative and sustainable DeFi platform.

Here’s what we’ll cover:

Tokenomics and Supply: Clear details on token supply and hard caps for WIGO on Fantom and FIVE on Sonic.
Staking System Overhaul: How the new veFIVE token empowers users to shape the protocol and make governance decisions.
FIVE Emissions Distribution Upgrades: A focus on decentralization and aligning emissions strategies with ecosystem goals.
Core DeFi Upgrades: Enhanced transaction mechanics, improved DEX fee structures, enhanced GBM and more.
DAO and veFIVE Holders: The power of veFIVE holders in farm management and governance decisions.
Migration Process and Incentives: Guidance and benefits on migrating WIGO tokens and WIGO/FTM LPs to Sonic, plus incentives for LPs who participate.

Let’s dive in.

Tokenomics: WIGO to FIVE Migration and Supply Details

As part of the migration, all WIGO holders on Fantom will have the opportunity to exchange their tokens for FIVE on Sonic at a 1:1 ratio. For example, if you hold 1,000 WIGO tokens on Fantom, you can swap them for 1,000 FIVE tokens on Sonic. This migration window will be limited and once it closes there will be no direct connection between the two tokens.

Key Points About FIVE Tokenomics

Circulating Supply & Max Supply (Hard Cap):

FIVE starts with the same maximum supply on Sonic as WIGO started on Fantom: 2 billion tokens.
The BIGGEST part is that unlike WIGO token with 2B hard-cap that can never be less or more, FIVE’s hard cap is decreasable (but never increasable).
This might be the FIRST time that a DeFi platform not only has the ability to reduce its circulating tokens but also becomes stable enough to lower its total token cap.
And yes, through mechanisms like Burn-to-Mint (B2M) or the Gamified Burn Module (GBM) as we burn FIVE tokens on Sonic the hard cap can be reduced over time with DAO approval.

Impact of Non-Migrated WIGO Tokens:

Any WIGO tokens that remain on Fantom and are not migrated will permanently reduce the hard cap of FIVE on Sonic.
Example: If 200M WIGO tokens are not migrated, FIVE’s initial max supply hard-cap will be 1.8 billion instead of 2 billion, and YES, lower circulating supply too!
So, right now, with about 1.7B WIGO tokens in circulation and a 2B cap, if 200 million WIGO aren’t migrated to Sonic, both FIVE’s hard-cap and circulating supply will decrease by the same amount.

veFIVE: Empowering Stakers to Shape DeFive

One of the key upgrades in DeFive is its new staking system, designed to address the limitations of WigoSwap’s current WigoBank. Previously, staking WIGO tokens provided users with simple rewards and the ability to unlock their tokens instantly, but without any meaningful impact on the platform. With DeFive, the staking system evolves to give users more control, value, and participation in the ecosystem.

What is veFIVE?

When you lock your FIVE tokens on DeFive staking, you receive non-transferable veFIVE (vote-escrowed FIVE), a tokenized representation of your locked stake. The amount of veFIVE you receive depends on how many tokens you lock and for how long. This system incentivizes long-term commitment by rewarding users who are more deeply invested in the protocol.

Benefits of veFIVE Holders

1.Earn Rewards:

Reward Distribution: veFIVE holders receive 20% of all emission as rewards, creating a consistent and valuable earning mechanism.
Bribes: Apart from earning FIVE, veFIVE holders can vote for gauges to claim bribes from external bribe marketplaces. These bribes are usually submitted by external project teams. This serves as an additional source of yield for veFIVE holders, and also diversifies the type of tokens they receive as yield.
B2M priorities: veFIVE holders will have priorities on further rounds of burn-to-mint events on DeFive.

2.Governance Power:

veFIVE gives stakers the ability to actively participate in key platform decisions, as example:

Adjusting APRs: Decide which farms should receive higher or lower APRs.
Farm Listings: Vote on which farms should be added or removed.
Hard-Cap Adjustments: Participate in DAO decisions to decrease FIVE’s hard cap, directly influencing the tokenomics and scarcity.
and Much More!

The introduction of veFIVE transforms staking from a passive activity into a dynamic tool for governance and influence. By empowering users to shape the future of the platform, DeFive creates a more engaged and participatory community, ensuring that key metrics align with user interests and ecosystem growth.

In short: veFIVE holders are the backbone of DeFive, earning rewards while driving meaningful changes that benefit the entire Sonic ecosystem.

Emissions Distribution Upgrades

DeFive introduces significant improvements to the way rewards are distributed, prioritizing sustainability, community-driven decisions, and long-term growth. Here’s what you need to know about the changes to emissions distribution on Sonic:

1. No More Team Allocation

One of the most impactful changes is the elimination of team allocations from new token emissions.

On DeFive, 100% of emissions are allocated to the community: 80% to Liquidity Providers and 20% to veFIVE holders.

This shift demonstrates our commitment to creating a transparent, user-focused platform that prioritizes community growth over team profits.

2. Reduced Emission Speed

To ensure sustainable tokenomics, the speed of new token emissions will be reduced:

WigoSwap currently mints tokens at 9 WIGO/sec on Fantom.
DeFive will mint tokens at a reduced rate of 5 FIVE/sec on Sonic.

This slower emission rate ensures a balanced distribution of rewards while extending the platform’s longevity.

3. Emission Flexibility Through DAO Decisions

DeFive introduces a dynamic minting system that allows the speed of emissions to be adjusted within a predefined range:

Minting speed can vary UP to 5 FIVE/sec, with changes subject to DAO approval.

In short: DeFive’s emissions distribution upgrades prioritize sustainability, fairness, and community-driven governance, laying a solid foundation for the platform’s future success.

Core DeFi Upgrades

DeFive introduces key upgrades to its core DeFi infrastructure, ensuring better efficiency and a more sustainable ecosystem on Sonic. These changes reflect our commitment to creating a cutting-edge platform while addressing the needs of users and the community.

1. Updated Swap Fees for Higher Volume

To boost transaction volume on Sonic, DeFive features a new, optimized fee structure:

Swap fees are set at 0.18% per transaction, ensuring transactions remain affordable while driving significant activity on the platform.

This competitive fee aligns with Sonic’s high-speed infrastructure and positions DeFive as an attractive choice for traders.

2. Doubling Burn Allocation

DeFive significantly increases its commitment to token burning via the Gamified Burn Mechanism (GBM):

~12.5% of transaction fees are allocated to GBM, effectively doubling the burn rate compared to WigoSwap on Fantom.
This ensures a much higher volume of FIVE tokens are burned over time, reducing circulating supply and increasing scarcity.

3. Platform Revenue for Development Costs

Another 12.5% of transaction fees are allocated as platform revenue, covering essential development and operational costs.

This compensates for the removal of the team’s share from emissions.
It assures the community that DeFive is focused on sustainability and consistently working to increase transaction volumes.

4. Liquidity Providers Earn 75% of Fees

The remaining 75% of transaction fees are distributed directly to the liquidity providers of the respective pools, ensuring they remain incentivized to support the platform.

These core DeFi upgrades reflect our goal of building a sustainable and user-focused platform:

Reduced Fees attract higher transaction volumes.
Increased Burning Allocation strengthens tokenomics and scarcity.
Platform Revenue ensures continued innovation and development.
LP Incentives keep liquidity deep and active for traders.

Our top priority is to maximize transaction volume on Sonic, and that will be our primary focus. DeFive, with its new and expansive features, enables us to onboard a large number of tokens onto the Sonic network. By increasing transaction volume and liquidity, we can set the stage for exponential growth.

DeFive DAO: Empowering Users to Shape its Future

DeFive will operate with a Decentralized Autonomous Organization (DAO), putting users at the heart of decision-making. This ensures a truly decentralized platform where the community drives progress and helps define the path forward on Sonic.

DeFive’s DAO will be powered by veFIVE holders, who gain voting power by staking their FIVE tokens. This model not only rewards users for their commitment but also empowers them to actively shape the platform.

How the Migration Will Be Processed

The migration from WigoSwap to DeFive is designed to be smooth and user-friendly, catering to two main groups: WIGO holders and WIGO/FTM liquidity providers. Our migration interface ensures a seamless transition for both.

1.For WIGO Holders

All WIGO holders will be able to lock (de-mint) their tokens on Fantom and mint FIVE tokens on Sonic, with no additional requirements.

Ratio: 1 WIGO locked = 1 FIVE minted.
Process: Just 2 simple steps through our migration interface.

This straightforward mechanism ensures all holders can seamlessly transition to the new ecosystem.

2.For WIGO/FTM Liquidity Providers

Liquidity providers (LPs) will have the ability to lock their LP tokens on Fantom and receive equivalent LP tokens on DeFive on Sonic.

No Need to Remove Liquidity: There’s no need to break your LP positions, migrate tokens separately, and recreate LPs on Sonic.
Simple Interface: The migration interface is the only way to move your LPs efficiently to Sonic without unnecessary steps.

Incentives for migrated Liquidity Providers

We’re introducing two major rewards to incentivize LP migration:

1.Platform Revenue Share:

All WIGO/FTM LPs on WigoSwap who migrate their LP tokens through our exclusive interface to DeFive will receive 25% of DeFive’s swap fees (GBM and Platform revenue share) for the first 3 months on DeFive.
This is a direct share of DeFive’s platform revenue, rewarding early supporters of the migration.

2.Whitelist for the 4th Burn-to-Mint (B2M) private round:

The first 500 largest LP providers who migrate their WIGO/FTM LP tokens through our exclusive interface to DeFive will be whitelisted for the 4th Burn-to-Mint event private round on Sonic.

3. We’re working on more incentives to help smooth LP transfers to DeFive. (To be announced)

(No need to mention that 3rd B2M private round requirements have been announced before)

Our Advice: Hold Your Positions

If you’re a WIGO holder or a WIGO/FTM LP provider, we strongly recommend:

Hold your WIGO tokens and LPs.
Wait for the official announcement of the migration interface.

This process is your gateway to the next big opportunity on Sonic with DeFive.