[AIP-61] Migrate v1 to v2 and sunset v1

Since we launched Alchemix v2 in March, we have seen a significant amount of TVL move from v1 to v2, aided by the migration tool we provided for Alchemix users. Despite having this tool and several months to migrate, there are still over 10k ETH and 50m DAI locked in v1. The Alchemix team would like to sunset the old v1 contracts, and we have now developed and prepared a method for migrating the v1 positions into v2.

The process of migrating involves a few steps. First, we will increase the deposit caps on v2 to allow for the migrated funds to be deposited into v2. Then, we will deploy new v1 vault adapters for both DAI and WETH. Next, when we initiate these vaults for the migration process, all underlying collateral in v1 will be withdrawn from Yearn and sent to the new vault adapter. Once this action is taken, user funds will be held idle in this new adapter until each user performs the migration for their account (a UI will be provided for this step).

In order to migrate, users will call withdraw(1) on the v1 Alchemist. For v1 users, their exact balance and debt at the time of the migration will be carried over to v2. So, if Alice has 100k DAI deposited and 30k alUSD debt in v1, after the migration, she would have 0 deposit and 0 debt in v1, and an additional 100k deposit plus 30k debt added to their account in v2. Since v1 uses the yvDAI and yvWETH vaults, their balances will be migrated to the yvDAI and yvWETH vaults in v2, respectively. Users can then migrate to other vaults within v2 if they so choose.

The Alchemix team has completed all the development work of this migrator already, and it has passed several rounds of internal audits. The team is very confident in the safety of this operation, but, as always, there are unknown risks involved at the smart contract level.

The Alchemix team understands that some users may prefer to not take any risks during the migration and complete the process manually. Consequently, we will give the remaining v1 users before the week of September the 12th following the passing of this vote to either manually migrate or close their v1 positions before beginning the automatic migration process.

A vote “For” approves of the migration plan

A vote “Against” rejects the migration plan.