[AIP-123] The Great v2 to v3 Migration
The Great v2 to v3 Migration
Alchemix v2 and v3 work in fundamentally different ways. If v2 continued alongside v3, it would degrade the v3 experience—debt originated in v2 would redeem positions in v3, exposing v3 users to redemptions while v2 users are not. For v3 to live, v2 must die. To achieve this, we propose a full version migration for all existing users.
Migration Process
| Step | Description |
|---|---|
| 1 | Shut down v2 via contract upgrade that disables user-facing functions, effectively freezing state |
| 2 | Snapshot all user positions' deposits and debt |
| 3 | Withdraw all deposits from v2 and send to a migration-specific multisig wallet |
| 4 | Convert all collateral to USDC and wETH respective to their underlying assets |
| 5 | Deploy and partially initialize v3 contracts to enable position creation |
| 6 | Recreate all v2 user positions with exact deposit value and debt from snapshot. DAO treasury covering some of the potential slippage losses. (Note: dust positions will not be credited in v3) |
| 7 | Verify each position and distribute position NFTs to respective users (positions are NFT-bound in v3 for easy transferability) |
| 8 | Complete v3 initialization and launch |
Timeline: The entire process is expected to take approximately one week to avoid slippage, as some LSTs in v2 lack the liquidity depth to execute migration trades quickly.
Migration Mana Program
We know v3 brings radical changes to Alchemix, so we're rewarding users who stay through the migration. The Migration Mana Program will retroactively award Mana to historical depositors and LPs. If you stay through the migration, your earned Mana earns you a share of a 10,000 ALCX migration bonus, split proportionally among all participants.
Users can continue to earn Mana during the countdown period by maintaining or increasing deposits and LP positions before the snapshot.
Important Notice
- 3-week countdown will be posted on alchemix.fi before v2 shutdown
- Withdrawals remain open until migration countdown reaches zero
- Users uncomfortable with migration should withdraw beforehand (and can redeposit when v3 launches)
- Slippage protection: Losses up to 0.25% covered by DAO treasury
- No action required if you wish to participate in migration
Vote: Approve | Deny | Abstain
Off-Chain Vote
Discussion
Timeline
Jan 13, 2026Proposal created
Jan 13, 2026Proposal vote started
Jan 17, 2026Proposal vote ended