In the more-than four months since Aave V2 was launched, ~60% of the Aave protocol liquidity organically migrated from Aave V1 to the Aave V2 reserves.
With significant reserves in, the community has the opportunity to implement a plan to transition the remaining reserves from V1 to V2. The community has the opportunity to bring about this change to ease the borrowing pressure on V1, to address high transaction fees that exist now, and may increase further upon the implementation of Berlin Hardfork. The migration can benefit not only Aave users, but also the Aave ecosystem as a whole because it will allow protocols integrating with Aave to have additional stablecoins liquidity available (due to the ecosystem-wide stablecoin liquidity crush).
The transition plan can have several phases to progressively allow users to upgrade their liquidity on Aave V2 at their own pace.
If governance approves this proposal, the next proposed transition phase could be to disable the ability to take new stablecoins loans.
Summary of proposal :
Activation of phase 1 of the transition plan, creation of an AIP vote disabling new stable rates loans of all assets on Aave V1.