The Great Migration
40acres V2 is coming in Q2
One year of 40acres
40 Acres launched and processed our first epoch a year ago today!
In the year since, we’ve gone on an amazing journey, from a small side project to a full-blown business. We’ve processed over $4 million in weekly rewards and facilitated over $24 million in loans.
When we launched, we had a good idea of what users wanted, but we learned quickly that our MVP was just that, an MVP. We added key features like manual voting, reinvesting, snowball repayment, and so much more. All of these improvements helped us build the V1 product we have now. It’s a great product, but to move into the next phase of 40 Acres, we must continue to iterate and innovate.
So what is changing?
Portfolio Accounts
Portfolio Accounts are smart contract wallets designed specifically for DeFi lending. Each account serves a single purpose and automatically handles the complex workflow of claiming rewards, managing collateral, and repaying loans.
Leverage Purchase NFTs
Borrow USDC → Buy veNFT from marketplace → Add as collateral
All in one atomic transaction with flash loan safety
Cross-Chain Strategies
Deposit collateral on Base
Claim rewards on Optimism
Bridge and process automatically
Multi-Strategy Management
Run multiple strategies simultaneously
Aggregate analytics across all positions and assets
Automate Everything
Rewards automatically swap to USDC
Cross-chain bridging handled behind the scenes
Lending Mechanics: Utilization-Based
Alongside Portfolio Accounts, we’re introducing dynamic fee models that adjust rates based on vault utilization similar to protocols like Aave and Morpho.
How it works:
Revenue share now ranges from 5%-95% based on vault utilization
Creates balance between borrower demand and lender supply
Benefits:
Lenders earn higher yields during periods of high demand
Borrowers pay less in fees during times of low demand
Liquidity remains available when borrowers need it most
What to expect going forward
Migration to portfolio accounts is required and will go live near the beginning of Q2.
Migration to utilization based lending vaults are not required for current borrowers,
Users who wish to keep their current loan terms, will be able to do so, as we are taking a user-first approach when it comes to this. Users can migrate when they are ready.
Upon launch of utilization based lending in mid to late Q2, loan origination will be halted on existing vaults.
40acres will continue to process repayments for existing borrowers until all loans are either repaid or users transition to utilization based vaults.
Once again, all users will be required to migrate to portfolio accounts in Q2. While current loans terms will stay the same and users will be able to migrate to new vaults when they please.
Closing
This upgrade reflects a full year of learning and building with our community.
40 Acres v2 is almost here and it will provide even better automation, cleaner execution, and infrastructure built to scale.
We’re just getting started. 🫏
Cheers from the 40acres team :)