What happens with the deposit fees?

A lot of people have deposited, sacrificing the 0.7% fee, just to have to migrate couple of weeks later?
What happens with that fee now given the circumstances and is there going to be ANOTHER fee to deposit on xDAI for the people that are migrating?

Migration is wholly optional. If you do not wish to take another 0.7% fee upon re-entering a pool after migrating your LPs to xDai, you can very well continue farming on the ETH contract. Just be sure to harvest your pending Bao by Mar. 1 to prevent potentially losing unrealized rewards. Also keep into mind that the reward payouts on the ETH contract will be significantly reduced.

The Bao team has been very vocal about the xDai migration plans since at least early January. I’m sorry if this news came as a surprise to you - most users have been farming long enough to cover any farming related fees easily. Honestly speaking, the fee is so small that it shouldn’t feel like an issue at all if you’re planning to farm for even as little as a week. Those fees are primarily there to deter excessive entering and exiting of pools, rather than meant as some barrier of entry or admission price. Please refer to the documentation for more information on the fees and the intention behind them.