diff --git a/docs/changelog.md b/docs/changelog.md
index 2daa71f..5e88e58 100644
--- a/docs/changelog.md
+++ b/docs/changelog.md
@@ -2,6 +2,11 @@
 
 This project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html) and [Keep a Changelog](https://keepachangelog.com/en/1.0.0/) format.
 
+## [0.7.0] -- 2023-XX-XX
+- Added pop to project table and annotation model
+- Switched to pydantic2
+- Updated requirements (psycopg2 -> psycopg3)
+
 ## [0.6.0] -- 2023-08-24
 - Added date filter to project annotation
 
diff --git a/pepdbagent/_version.py b/pepdbagent/_version.py
index 906d362..c4b6bd4 100644
--- a/pepdbagent/_version.py
+++ b/pepdbagent/_version.py
@@ -1 +1 @@
-__version__ = "0.6.0"
+__version__ = "0.7.0a1"
diff --git a/pepdbagent/db_utils.py b/pepdbagent/db_utils.py
index e758ea1..9cf5d52 100644
--- a/pepdbagent/db_utils.py
+++ b/pepdbagent/db_utils.py
@@ -1,11 +1,10 @@
 import datetime
 import logging
-from typing import Any, Optional, List
+from typing import Optional, List
 
 from sqlalchemy import (
     BigInteger,
     FetchedValue,
-    PrimaryKeyConstraint,
     Result,
     Select,
     String,
@@ -13,7 +12,6 @@
     select,
     TIMESTAMP,
     ForeignKey,
-    ForeignKeyConstraint,
     UniqueConstraint,
 )
 from sqlalchemy.dialects.postgresql import JSON
@@ -92,6 +90,7 @@ class Projects(Base):
         onupdate=deliver_update_date, default=deliver_update_date
     )
     pep_schema: Mapped[Optional[str]]
+    pop: Mapped[Optional[bool]] = mapped_column(default=False)
     samples_mapping: Mapped[List["Samples"]] = relationship(
         back_populates="sample_mapping", cascade="all, delete-orphan"
     )
diff --git a/pepdbagent/models.py b/pepdbagent/models.py
index 0703940..6ab60a7 100644
--- a/pepdbagent/models.py
+++ b/pepdbagent/models.py
@@ -1,9 +1,6 @@
 # file with pydantic models
-import datetime
 from typing import List, Optional, Union
-
-import peppy
-from pydantic import BaseModel, Extra, Field, validator
+from pydantic import BaseModel, Extra, Field, validator, ConfigDict, field_validator
 
 
 class AnnotationModel(BaseModel):
@@ -21,12 +18,14 @@ class AnnotationModel(BaseModel):
     submission_date: Optional[str]
     digest: Optional[str]
     pep_schema: Optional[str]
+    pop: Optional[bool] = False
 
-    class Config:
-        allow_population_by_field_name = True
-        validate_assignment = True
+    model_config = ConfigDict(
+        validate_assignment=True,
+        populate_by_name=True,
+    )
 
-    @validator("is_private")
+    @field_validator("is_private")
     def is_private_should_be_bool(cls, v):
         if not isinstance(v, bool):
             return False
@@ -71,20 +70,20 @@ class UpdateItems(BaseModel):
     Model used for updating individual items in db
     """
 
-    name: Optional[str]
-    description: Optional[str]
-    tag: Optional[str]
-    is_private: Optional[bool]
-    pep_schema: Optional[str]
-    digest: Optional[str]
-    config: Optional[dict]
-    samples: Optional[List[dict]]
-    subsamples: Optional[List[List[dict]]]
-    description: Optional[str]
-
-    class Config:
-        arbitrary_types_allowed = True
-        extra = Extra.forbid
+    name: Optional[str] = None
+    description: Optional[str] = None
+    tag: Optional[str] = None
+    is_private: Optional[bool] = None
+    pep_schema: Optional[str] = None
+    digest: Optional[str] = None
+    config: Optional[dict] = None
+    samples: Optional[List[dict]] = None
+    subsamples: Optional[List[List[dict]]] = None
+
+    model_config = ConfigDict(
+        arbitrary_types_allowed=True,
+        extra="forbid",
+    )
 
     @property
     def number_of_samples(self) -> Union[int, None]:
@@ -99,37 +98,35 @@ class UpdateModel(BaseModel):
     Model used for updating individual items and creating sql string in the code
     """
 
-    config: Optional[dict]
+    config: Optional[dict] = None
     name: Optional[str] = None
     tag: Optional[str] = None
-    private: Optional[bool] = Field(alias="is_private")
-    digest: Optional[str]
-    number_of_samples: Optional[int]
-    pep_schema: Optional[str]
+    private: Optional[bool] = Field(alias="is_private", default=None)
+    digest: Optional[str] = None
+    number_of_samples: Optional[int] = None
+    pep_schema: Optional[str] = None
     description: Optional[str] = ""
     # last_update_date: Optional[datetime.datetime] = datetime.datetime.now(datetime.timezone.utc)
 
-    @validator("tag", "name")
+    @field_validator("tag", "name")
     def value_must_not_be_empty(cls, v):
         if "" == v:
             return None
         return v
 
-    @validator("tag", "name")
+    @field_validator("tag", "name")
     def value_must_be_lowercase(cls, v):
         if v:
             return v.lower()
         return v
 
-    @validator("tag", "name")
+    @field_validator("tag", "name")
     def value_should_not_contain_question(cls, v):
         if "?" in v:
             return ValueError("Question mark (?) is prohibited in name and tag.")
         return v
 
-    class Config:
-        extra = Extra.forbid
-        allow_population_by_field_name = True
+    model_config = ConfigDict(populate_by_name=True, extra="forbid")
 
 
 class NamespaceInfo(BaseModel):
diff --git a/pepdbagent/modules/annotation.py b/pepdbagent/modules/annotation.py
index 3b7873c..579406f 100644
--- a/pepdbagent/modules/annotation.py
+++ b/pepdbagent/modules/annotation.py
@@ -2,8 +2,7 @@
 from datetime import datetime
 from typing import List, Literal, Optional, Union
 
-from sqlalchemy import Engine, and_, func, or_, select
-from sqlalchemy.exc import IntegrityError
+from sqlalchemy import and_, func, or_, select
 from sqlalchemy.sql.selectable import Select
 
 from pepdbagent.const import (
@@ -189,6 +188,7 @@ def _get_single_annotation(
             Projects.last_update_date,
             Projects.digest,
             Projects.pep_schema,
+            Projects.pop,
         ).where(
             and_(
                 Projects.name == name,
@@ -214,6 +214,7 @@ def _get_single_annotation(
                 last_update_date=str(query_result.last_update_date),
                 digest=query_result.digest,
                 pep_schema=query_result.pep_schema,
+                pop=query_result.pop,
             )
             _LOGGER.info(f"Annotation of the project '{namespace}/{name}:{tag}' has been found!")
             return annot
@@ -307,6 +308,7 @@ def _get_projects(
             Projects.last_update_date,
             Projects.digest,
             Projects.pep_schema,
+            Projects.pop,
         ).select_from(Projects)
 
         statement = self._add_condition(
@@ -337,6 +339,7 @@ def _get_projects(
                     last_update_date=str(result.last_update_date),
                     digest=result.digest,
                     pep_schema=result.pep_schema,
+                    pop=result.pop,
                 )
             )
         return results_list
@@ -445,7 +448,7 @@ def _add_date_filter_if_provided(
             return statement
         else:
             if filter_by:
-                _LOGGER.warning(f"filter_start_date was not provided, skipping filter...")
+                _LOGGER.warning("filter_start_date was not provided, skipping filter...")
             return statement
 
     def get_project_number_in_namespace(
diff --git a/pepdbagent/modules/project.py b/pepdbagent/modules/project.py
index 6bb8b05..d3545dd 100644
--- a/pepdbagent/modules/project.py
+++ b/pepdbagent/modules/project.py
@@ -4,14 +4,20 @@
 from typing import Union, List, NoReturn
 
 import peppy
-from sqlalchemy import Engine, and_, delete, insert, or_, select, update
+from sqlalchemy import and_, delete, select
 from sqlalchemy.exc import IntegrityError, NoResultFound
 from sqlalchemy.orm import Session
 from sqlalchemy import Select
 
 from peppy.const import SAMPLE_RAW_DICT_KEY, SUBSAMPLE_RAW_LIST_KEY, CONFIG_KEY
 
-from pepdbagent.const import *
+from pepdbagent.const import (
+    DEFAULT_TAG,
+    DESCRIPTION_KEY,
+    NAME_KEY,
+    PKG_NAME,
+)
+
 from pepdbagent.db_utils import Projects, Samples, Subsamples, BaseEngine
 from pepdbagent.exceptions import ProjectNotFoundError, ProjectUniqueNameError
 from pepdbagent.models import UpdateItems, UpdateModel
@@ -200,6 +206,7 @@ def create(
         tag: str = DEFAULT_TAG,
         description: str = None,
         is_private: bool = False,
+        pop: bool = False,
         pep_schema: str = None,
         overwrite: bool = False,
         update_only: bool = False,
@@ -214,7 +221,8 @@ def create(
         :param name: name of the project (Default: name is taken from the project object)
         :param tag: tag (or version) of the project.
         :param is_private: boolean value if the project should be visible just for user that creates it.
-        :param pep_schema: assign PEP to a specific schema. [DefaultL: None]
+        :param pep_schema: assign PEP to a specific schema. [Default: None]
+        :param pop: if project is a pep of peps (POP) [Default: False]
         :param overwrite: if project exists overwrite the project, otherwise upload it.
             [Default: False - project won't be overwritten if it exists in db]
         :param update_only: if project exists overwrite it, otherwise do nothing.  [Default: False]
@@ -232,7 +240,7 @@ def create(
         elif proj_dict[CONFIG_KEY][NAME_KEY]:
             proj_name = proj_dict[CONFIG_KEY][NAME_KEY].lower()
         else:
-            raise ValueError(f"Name of the project wasn't provided. Project will not be uploaded.")
+            raise ValueError("Name of the project wasn't provided. Project will not be uploaded.")
 
         proj_dict[CONFIG_KEY][NAME_KEY] = proj_name
 
@@ -251,6 +259,7 @@ def create(
                 private=is_private,
                 pep_schema=pep_schema,
                 description=description,
+                pop=pop,
             )
             return None
         else:
@@ -268,6 +277,7 @@ def create(
                     last_update_date=datetime.datetime.now(datetime.timezone.utc),
                     pep_schema=pep_schema,
                     description=description,
+                    pop=pop,
                 )
 
                 self._add_samples_to_project(new_prj, proj_dict[SAMPLE_RAW_DICT_KEY])
@@ -299,9 +309,9 @@ def create(
 
                 else:
                     raise ProjectUniqueNameError(
-                        f"Namespace, name and tag already exists. Project won't be "
-                        f"uploaded. Solution: Set overwrite value as True"
-                        f" (project will be overwritten), or change tag!"
+                        "Namespace, name and tag already exists. Project won't be "
+                        "uploaded. Solution: Set overwrite value as True"
+                        " (project will be overwritten), or change tag!"
                     )
 
     def _overwrite(
@@ -315,6 +325,7 @@ def _overwrite(
         private: bool = False,
         pep_schema: str = None,
         description: str = "",
+        pop: bool = False,
     ) -> None:
         """
         Update existing project by providing all necessary information.
@@ -328,6 +339,7 @@ def _overwrite(
         :param private: boolean value if the project should be visible just for user that creates it.
         :param pep_schema: assign PEP to a specific schema. [DefaultL: None]
         :param description: project description
+        :param pop: if project is a pep of peps, simply POP [Default: False]
         :return: None
         """
         proj_name = proj_name.lower()
@@ -351,6 +363,7 @@ def _overwrite(
                     found_prj.config = project_dict[CONFIG_KEY]
                     found_prj.description = description
                     found_prj.last_update_date = datetime.datetime.now(datetime.timezone.utc)
+                    found_prj.pop = pop
 
                     # Deleting old samples and subsamples
                     if found_prj.samples_mapping:
@@ -476,14 +489,14 @@ def __create_update_dict(update_values: UpdateItems) -> dict:
             updating values
         :return: unified update dict
         """
-        update_final = UpdateModel()
+        update_final = UpdateModel.model_construct()
 
         if update_values.name is not None:
             if update_values.config is not None:
                 update_values.config[NAME_KEY] = update_values.name
             update_final = UpdateModel(
                 name=update_values.name,
-                **update_final.dict(exclude_unset=True),
+                **update_final.model_dump(exclude_unset=True),
             )
 
         if update_values.description is not None:
@@ -491,49 +504,49 @@ def __create_update_dict(update_values: UpdateItems) -> dict:
                 update_values.config[DESCRIPTION_KEY] = update_values.description
             update_final = UpdateModel(
                 description=update_values.description,
-                **update_final.dict(exclude_unset=True),
+                **update_final.model_dump(exclude_unset=True),
             )
         if update_values.config is not None:
             update_final = UpdateModel(
-                config=update_values.config, **update_final.dict(exclude_unset=True)
+                config=update_values.config, **update_final.model_dump(exclude_unset=True)
             )
             name = update_values.config.get(NAME_KEY)
             description = update_values.config.get(DESCRIPTION_KEY)
             if name:
                 update_final = UpdateModel(
                     name=name,
-                    **update_final.dict(exclude_unset=True, exclude={NAME_KEY}),
+                    **update_final.model_dump(exclude_unset=True, exclude={NAME_KEY}),
                 )
             if description:
                 update_final = UpdateModel(
                     description=description,
-                    **update_final.dict(exclude_unset=True, exclude={DESCRIPTION_KEY}),
+                    **update_final.model_dump(exclude_unset=True, exclude={DESCRIPTION_KEY}),
                 )
 
         if update_values.tag is not None:
             update_final = UpdateModel(
-                tag=update_values.tag, **update_final.dict(exclude_unset=True)
+                tag=update_values.tag, **update_final.model_dump(exclude_unset=True)
             )
 
         if update_values.is_private is not None:
             update_final = UpdateModel(
                 is_private=update_values.is_private,
-                **update_final.dict(exclude_unset=True),
+                **update_final.model_dump(exclude_unset=True),
             )
 
         if update_values.pep_schema is not None:
             update_final = UpdateModel(
                 pep_schema=update_values.pep_schema,
-                **update_final.dict(exclude_unset=True),
+                **update_final.model_dump(exclude_unset=True),
             )
 
         if update_values.number_of_samples is not None:
             update_final = UpdateModel(
                 number_of_samples=update_values.number_of_samples,
-                **update_final.dict(exclude_unset=True),
+                **update_final.model_dump(exclude_unset=True),
             )
 
-        return update_final.dict(exclude_unset=True, exclude_none=True)
+        return update_final.model_dump(exclude_unset=True, exclude_none=True)
 
     def exists(
         self,
@@ -565,7 +578,7 @@ def exists(
             return False
 
     @staticmethod
-    def _add_samples_to_project(projects_sa: Projects, samples: List[dict]) -> NoReturn:
+    def _add_samples_to_project(projects_sa: Projects, samples: List[dict]) -> None:
         """
         Add samples to the project sa object. (With commit this samples will be added to the 'samples table')
         :param projects_sa: Projects sa object, in open session
@@ -575,6 +588,8 @@ def _add_samples_to_project(projects_sa: Projects, samples: List[dict]) -> NoRet
         for row_number, sample in enumerate(samples):
             projects_sa.samples_mapping.append(Samples(sample=sample, row_number=row_number))
 
+        return None
+
     @staticmethod
     def _add_subsamples_to_project(
         projects_sa: Projects, subsamples: List[List[dict]]
diff --git a/pepdbagent/utils.py b/pepdbagent/utils.py
index dc11bcc..c58cff4 100644
--- a/pepdbagent/utils.py
+++ b/pepdbagent/utils.py
@@ -7,7 +7,7 @@
 import ubiquerg
 from peppy.const import SAMPLE_RAW_DICT_KEY
 
-from .exceptions import IncorrectDateFormat, RegistryPathError
+from .exceptions import RegistryPathError
 
 
 def is_valid_registry_path(rpath: str) -> bool:
diff --git a/requirements/requirements-all.txt b/requirements/requirements-all.txt
index 0b8fbeb..c658ca1 100644
--- a/requirements/requirements-all.txt
+++ b/requirements/requirements-all.txt
@@ -4,5 +4,5 @@ peppy>=0.40.0a4
 ubiquerg>=0.6.2
 coloredlogs>=15.0.1
 pytest-mock
-pydantic<2.0
-psycopg2-binary
+pydantic>=2.0
+psycopg
diff --git a/tests/README.md b/tests/README.md
index b0dd607..b057606 100644
--- a/tests/README.md
+++ b/tests/README.md
@@ -3,13 +3,12 @@
 ### How to run tests localy:
 1. Use or create empty database with next credentials:
 ```txt
-POSTGRES_USER=postgres
-POSTGRES_PASSWORD=docker
-POSTGRES_DB=pep-db
-POSTGRES_PORT=5432
+docker run --rm -it --name bedbase \
+  -e POSTGRES_USER=postgres \
+  -e POSTGRES_PASSWORD=docker \
+  -e POSTGRES_DB=pep-db \
+  -p 5432:5432 postgres
 ```
-Database can be created using docker file: [../pep_db/Dockerfile](../pep_db/Dockerfile)
 
-To run docker use this tutorial [../docs/db_tutorial.md](../docs/db_tutorial.md)
 
 2. Run pytest using this command: `pytest`
diff --git a/tests/conftest.py b/tests/conftest.py
index f210dbf..a99d059 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -5,9 +5,10 @@
 from sqlalchemy import create_engine
 from sqlalchemy import text
 
-DNS = f"postgresql://postgres:docker@localhost:5432/pep-db"
 from pepdbagent import PEPDatabaseAgent
 
+DNS = f"postgresql+psycopg://postgres:docker@localhost:5432/pep-db"
+
 
 DATA_PATH = os.path.join(
     os.path.dirname(os.path.dirname(os.path.abspath(__file__))),
diff --git a/tests/test_pepagent.py b/tests/test_pepagent.py
index 7a5e84a..d299bdf 100644
--- a/tests/test_pepagent.py
+++ b/tests/test_pepagent.py
@@ -5,8 +5,7 @@
 import pytest
 
 from pepdbagent.exceptions import FilterError, ProjectNotFoundError
-
-DNS = f"postgresql://postgres:docker@localhost:5432/pep-db"
+from .conftest import DNS
 
 
 DATA_PATH = os.path.join(
@@ -386,7 +385,7 @@ def test_all_annotations_are_returned(self, initiate_pepdb_con, namespace, name)
             name=name,
             tag="default",
         )
-        assert result.results[0].__fields_set__ == {
+        assert result.results[0].model_fields_set == {
             "is_private",
             "tag",
             "namespace",
@@ -397,6 +396,7 @@ def test_all_annotations_are_returned(self, initiate_pepdb_con, namespace, name)
             "last_update_date",
             "submission_date",
             "pep_schema",
+            "pop",
         }
 
     @pytest.mark.parametrize(