Aave v2 to v3 migration

Migrate your Aave v2 position to Aave v3

Right now InstaDapp allows you to migrate your Aave v2 position (both deposits and borrows) to v3. The caveat is that you can only do it if you move your positions to their platform. If you wish to withdraw from InstaDapp you’re required to pay back all your loans :(

It would be nice if Aave implemented an easy way to migrate positions from v2 to v3 on its website while keeping your assets in your wallet and not having to liquidate/pay back loans.

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The idea is that once the V3 markets have been battle-tested further, the next step would be to upgrade the whole V2 market to V3 without the users needing to do anything. This upgrade of course would be subject to formalized governance process (forum post, snapshot and on-chain voting) before execution.

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yeah that would be super cool. I’d just worry about the decentralization of the Aave platform if it is required to upgrade- even if it is voted on in a decentralized manner.

Either way, it might go something like:

  • Sent v2 tokens to smart contract
  • Smart contract burns tokens
  • Smart contract mints v3 tokens

I’m not sure how they’d transfer borrow positions but InstaDapp seemed to figure it out.

Fully in support of this process - and believe it will be welcomed by the community.

Allowing a seamless way for users to migrate from V2 to V3 seems like a powerful UX and the protocol can consolidate reserve factors and TVL.

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I just added a feature request for this on Aave’s Interface repo. Check it out

Would this still work on Avalanche where the v2 version uses wrapped USDC and USDT while v3 uses native versions?

seems like you should be able to

I think this conversation mixes up different meanings for migration:

The aave v2 ethereum market will be upgraded to v3 at some point, meaning users don’t have to do a thing.
For avalanche & polygon there are two markets already (v2 and v3) so a migration there doesn’t really make sense. It’s all the contract risk without the benefits (in the end two v3 markets coexisting).


For migrating your position, there was a migration tool for v1->v2 which essentially uses flashloans to keep you from being liquidated while resolving your positions on v1 and creating them in v2 sth similar could be done for v3.

For v2->v3 avalanche that’s not super straightforward as v3 avalanche market has different assets listed so your positions cannot just be migrated from one market to another but you would need to swap the tokens in between. Also on avalanche v3 a LM program has already started, so a lot of people migrated their positions already without a tool (there’s now also the repay with collateral feature enabled, making it easier to deleverage current position) - overall might not be worth it to create a position migration contract but idk.

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It’s been added to roadman :)